Citi Faces ‘Finders Keepers’ in Fighting $500 Million Ruling
- Bank to appeal decision that Revlon lenders can keep payment
- N.Y. precedent prizing finality in transfers is high hurdle
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A 30-year-old legal precedent that essentially says “finders keepers” in certain financial transactions will make it hard for Citigroup Inc. to get a half-billion-dollar decision against it overturned.
The bank has said it will appeal the ruling -- issued Tuesday by a federal judge -- that rejected its attempt to recover $504 million it accidentally sent to asset managers for Revlon Inc. lenders last summer. The recipients include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management.