Citigroup will not receive back $ 500 million in error, the court ruled

Citigroup acts as a credit intermediary for Revlon. Last August, the bank mistakenly sent $ 893 million of its own money to Revlon’s creditors instead of $ 7.8 million in interest. She inadvertently repaid Revlon’s loan, which was due in 2023. According to the bank, this mistake was the result of human error, Reuters writes.

Some creditors returned the money received, but ten of the creditors refused to do so. Citigroup subsequently filed a lawsuit to recover the roughly $ 500 million the ten creditors received.

The bank argued that creditors should return the money because they knew or should have known that they had received it by mistake. However, the court ruled today that creditors do not have to return the money.

“They rightly believed that these payments were intentional,” Judge Jesse Furman said. “To think that Citibank, one of the most sophisticated financial institutions in the world, has made a mistake never before made, worth almost a billion dollars, would be bordering on irrationality,” he added.

According to its spokesman, Citigroup does not agree with the court’s decision and plans to file an appeal. “We believe we have a right to this money, and we will continue to work for its full return,” the spokeswoman said. According to analyst Elliott Stein of Bloomberg Intelligence, Citigroup could also demand non-refundable money from Revlon.

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