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Citigroup Fights for Freeze on $500 Million It Sent in Blunder

  • Revlon lenders won battle to keep funds, but judge froze them
  • At Friday hearing they will ask court to release the money
Citigroup to Eliminate 11,000 Jobs, Take $1 Billion Charge

Photographer: Scott Eells/Bloomberg

Revlon Inc. lenders that received more than half a billion dollars in accidental payments from Citigroup Inc. are asking a judge to free up the money he’s already ruled is theirs to keep.

The bank sued 10 asset managers for the Revlon lenders last summer to force them to return $504 million it had mistakenly wired them, an epic back office blunder that led to a closely watched trial. U.S. District Judge Jesse Furman froze the funds while the dispute played out. Then, in a surprise decision in February, Furman ruled for the money managers, finding they shouldn’t have been expected to know the wire transfers were an error. Citibank appealed his ruling.