Citigroup removes lawsuit versus Investcorp over accidental Revlon payment
Citigroup Inc is dropping claims against one of the entities it had taken legal action against in an effort to recover nearly $1 billion that it mistakenly sent to lending institutions of Revlon, according to a court filing on Wednesday.
The third-largest U.S. bank has dismissed all charges against Investcorp Credit Management LLC, which it said had gotten $18.9 million from Citi’s unintentional 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 move $900 million of its own funds to Revlon lenders, a mistake that caused pricey lawsuits, regulative permission orders and a $400-million penalty.
Since then, Citi has revealed that Chief Executive Mike Corbat would retire earlier than anticipated, with existing president Jane Fraser set to succeed him.