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Citi Loses Bid to Recoup Massive Mistake in Surprise Ruling

  • Asset managers for Revlon lenders can keep over $500 million
  • It’s the latest blow to Citigroup and could affect industry
Bloomberg business news
Watch: Citigroup Inc. lost a legal battle to recover half a billion dollars it sent Revlon Inc. lenders. Jenny Surane reports.(Source: Bloomberg)
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Citigroup Inc. unexpectedly lost a legal battle to recover half a billion dollars it sent Revlon Inc. lenders, after the embarrassing blunder forced it to answer to regulators and tighten its internal controls.

U.S. District Judge Jesse Furman on Tuesday ruled that 10 asset managers for the lenders -- which include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management -- don’t have to return $504 million that Citibank said it mistakenly transferred in August while trying to make an interest payment. He said they shouldn’t have been expected to know that the transfer, which totaled more than $900 million before some lenders returned their share, was an error.