Citigroup Inc C.N 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 REV.N, 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.