- Revlon ( NYSE: REV ) fell 8.7% after a federal appeals court ruled that a group of the cosmetic company's creditor have to return $500 million that was accidentally sent to them by Citibank ( C ).
- A group of three judges vacated the district court's decision and remanded the case to district court, according to the ruling viewed by Seeking Alpha.
- Citigroup ( C ) originally lost the case in February of last year in its effort to recoup $900 million it had mistakenly transferred to Revlon ( REV ) lenders.
- The defendants — including Brigade Capital Management, HPS Investment Partners, and Symphony Asset Management plus seven others — claimed that they were owed the payment since Revlon ( REV ) was in default on a loan.
- Citigroup ( C ) sued Brigage Capital Management in August 2020 to return its share of more than $900M that the bank mistakenly transferred to Revlon lenders.
- The bank said wiring the money to Brigade and other lenders on Aug. 1 1 was the result of a clerical error.
For further details see:
Revlon drops after Citibank wins appeal in $500M transfer case