THE WHAT? A lawsuit brought by Citigroup against a group of Revlon lenders to whom it mistakenly paid some US$900 million has been given the green light to proceed by a federal judge, according to a report published by Reuters.
THE DETAILS The lawsuit’s viability centers on a jurisdictional requirement that the defendants be citizens of different states to Citibank’s South Dakota unit. Lawyers for Citigroup and the defendants said progress had been made on this point, Reuters said.
THE WHY? The original accident has been attributed to human error but Citigroup is yet to recover some US$508 million from the defendants, including Brigate Capital Management and HPS Investment Partners, who claim they are not obligated to return the money and had no reason to believe that it had been paid by mistake.