Citigroup drops lawsuit against Investcorp over accidental Revlon payment

Citigroup drops lawsuit against Investcorp over accidental Revlon payment

The Citigroup (Citi) logo is seen at the SIBOS banking
The Citigroup (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. (Photo: REUTERS/Chris Helgren)

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.

Source: Reuters

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