Citigroup Loses Lawsuit to Recover $500 Million It Inadvertently Transferred to Revlon

The financial group mistakenly injected that money to creditors of the cosmetics manufacturer.
Citigroup Loses Lawsuit to Recover $500 Million It Inadvertently Transferred to Revlon
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Entrepreneur Staff
1 min read
This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

A federal judge in the United States ruled Tuesday that Citigroup will not be able to recover $ 500 million that it transferred by mistake to Revlon creditors.

According to the BBC , this happened on August 11, 2020 when Citigroup, acting as loan officer, injected 893 million to the lenders into the cosmetics company to pay off a loan that was due in 2023. Citigroup's intention was to send an interest payment of only $ 7.8 million, but an operator made a mistake and transferred more money.

Some creditors returned the extra money, but 10 creditors refused and Citigroup sued to recover $ 501 million.

Manhattan Judge Jesse Furman indicated that the transfer made on August 11, 2020 was "final and complete operations, not subject to revocation."

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