Citi Defeat on $500 Million Error Was Wrong, Groups Say
- Legal experts fault judge’s ruling in brief to appeals court
- ‘Sheer magnitude’ of transfer was “giant ‘red flag,’” they say
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Investment firms shouldn’t be allowed to keep half a billion dollars Citigroup Inc. accidentally sent them because the payment wasn’t due for three more years, legal experts and advocacy groups said in asking a court to overturn the ruling.
A group of law professors said in a brief filed Thursday with the federal appeals court in Manhattan that the lower-court ruling, allowing Revlon Inc. lenders to hold on to $504 million the bank wired them last August, misapplied legal precedent and could harm the industry’s standards.