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Company News

Citigroup drops lawsuit against Investcorp over accidental Revlon payment

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

(Reuters) - Citigroup Inc is dropping claims against one of the entities it had sued in an attempt to recoup nearly $1 billion that it mistakenly sent to lenders of Revlon Inc, 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 received $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 $900 million of its own funds to Revlon creditors, a blunder that led to costly litigation, regulatory consent orders and a $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.

Reporting by C Nivedita in Bengaluru; Editing by Devika Syamnath

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