NEW YORK: Citigroup Inc is dropping claims against one of the entities it had sued in an attempt to recoup nearly US$1 billion that it mistakenly sent to lenders of Revlon Inc , according to a court filing on Wednesday.
The third-largest US bank has dismissed all charges against Investcorp Credit Management LLC, which it said had received US$18.9 million from Citi's accidental payment.
"We are pleased to have these funds returned," said Citigroup in a statement.
Citi had sued a dozen firms for refusing to return the payment after an "operational error" caused the bank to transfer US$900 million of its own funds to Revlon creditors, a blunder that led to costly litigation, regulatory consent orders and a US$400-million penalty.
Since then, Citi has announced that Chief Executive Mike Corbat would retire earlier than expected, with current president Jane Fraser set to succeed him.