THE WHAT? A group of legal experts has criticised the outcome of a case that has prevented Citigroup from recouping finds mistakenly paid to Revlon creditors, according to a report published by Bloomberg.
THE DETAILS The brief, filed with the federal appeals court in Manhattan last week, opined that the lower court judge misapplied legal precedent and that the law should not encourage wilful ignorance.
THE WHY? The professors told the court, per Bloomberg, “The sheer magnitude of the transfer, constituting nearly 100 times the size of defendants’ scheduled coupon payments, was a giant ‘red flag’.” In short, the repayment of the loan in full and without prior notice should have caused any reasonable person to question the payment.