Hedge funds to return $500 million that Citigroup gave to them

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Hedge funds to return $500 million that Citigroup gave to them

Findingers keepers, losers weepers is not always the law of the land.

A court filing shows that hedge funds are about to return some $500 million that Citigroup C accidentally gave to them three years ago.

In 2020, Citi paid $894 million of a loan that was owed by Revlon, because of a processing error. Citi was sued to get back $500 million that was not returned to it after discovering the error, from lenders to Revlon including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management. Three defendants have indicated they are ready to sign an agreement to resolve the litigation, while other parties have made substantial progress toward a deal but aren't in a position to return the money, according to lawyers from both sides in a letter to the court Monday night. In September, an appeals court ruled that the lenders to Revlon did not deserve a huge windfall, overturning an earlier rule that they could keep the payouts.