Citigroup cannot recoup Revlon payouts after nearly $900 million gaffe: U.S. judge

FILE PHOTO: The logo of Citi bank is pictured at an exhibition hall in Bangkok, Thailand, May 12, 2016. REUTERS/Athit Perawongmetha/File Photo

NEW YORK (Reuters) – A federal judge on Tuesday said Citigroup Inc cannot recoup half a billion dollars of its own money that it mistakenly wired lenders of cosmetics maker Revlon Inc.

U.S. District Judge Jesse Furman in Manhattan said the Aug. 11, 2020 wire transfers at issue were “final and complete transactions, not subject to revocation.”

The case stemmed from an incident where Citigroup, acting as Revlon’s loan agent, wired $893 million to Revlon’s lenders, appearing to pay off a loan not due until 2023.

Citigroup had intended to send a $7.8 million interest payment, and blamed human error for the gaffe.

But while some lenders returned money they were sent, 10 asset managers refused, prompting Citigroup’s lawsuit to recoup the estimated $501 million they received.

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