Citibank, a lawsuit in the United States, lost a refund of half a billion dollars of the $ 900 million total value of an amount mistakenly transferred to an American beauty company.
According to CNN, the American judiciary acknowledged that Citibank would not be able to recover the amount transferred by mistake to a company called Revlon working in cosmetics, and that the recipients of the money could keep it.
The case goes back to August 2020, in which Citibank demanded to recover its money, as the bank was intending to transfer $ 8 million, representing interest on a loan, to a group of beauty company lenders.
After letters preceding the case, Citibank was able to recover nearly $ 400 million, while it was unable to recover the remaining amount, which prompted him to go to court.
The court ruled that the lenders were justified in believing that the transfer was intended, while Citigroup did not realize the extent of its mistake until about a day after the transfer.
The amount transferred, in full, is close to the value of the combined loan offered, which will mature in full by 2023.
Final and complete transactions
US District Court Judge Jesse Foreman, in Manhattan, said the transfers made on August 11, 2020 to Revlon's lenders were final, complete and not subject to cancellation.
He described the error as a "banking mistake" that might be unprecedented in nature and size.
Citigroup - one of the most developed financial institutions in the world - said in a statement: We strongly oppose this decision and intend to appeal it .. We believe we are eligible to obtain the funds and will continue to seek full recovery.
The law usually penalizes those who mistakenly spend money deposited into their accounts.
Unintentional transfers are common in the digital age, and their value can be paid immediately, but New York law has exceptions to this rule, and if the recipient is entitled to the money and he did not know that he was transferred to him by mistake, he can keep it.