News & Analysis as of

Citibank Wire Transfers

Vinson & Elkins LLP

Second Circuit Determines Agent’s Mistaken Payment of Principal to Lenders Does Not Invoke “Discharge-For-Value” Exception to...

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On September 8, 2022, a three-judge panel in the United States Court of Appeals for the Second Circuit (the “Second Circuit”) reversed the United States District Court for the Southern District of New York (the “District...more

Cadwalader, Wickersham & Taft LLP

Second Circuit Rules in Favor of Citibank in Accidental $500m Transfer in Revlon Loan Transaction

In a decision rendered September 8, 2022, a three-judge panel for the United States Court of Appeals for the Second Circuit (the “Court”) vacated a February, 2021 decision by the United States District Court for the Southern...more

Eversheds Sutherland (US) LLP

The Windfall Wire: Second Circuit panel says Citibank may recover nearly $500 million in inadvertently wired funds

​​​​​​​Citibank’s balance sheet is likely breathing a sigh of relief. A Second Circuit panel held that the bank may finally recoup nearly $500 million in funds that it inadvertently wired to lenders almost two years ago. US...more

Davies Ward Phillips & Vineberg LLP

Citibank Gets Its Money Back

A February 16, 2021 decision of the United States District Court for the Southern District of New York held, in In re Citibank August 11, 2020 Wire Transfers, 520 F. Supp. 3d 390, that lenders who received almost $900 million...more

McGuireWoods LLP

I Can’t Get No Satisfaction … 2nd Circuit Reverses, Remands Revlon Decision

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A three-judge panel of the 2nd U.S Circuit Court of Appeals on Sept. 8, 2022, reversed a decision of the U.S. District Court for the Southern District of New York regarding lenders who refused to return funds that were...more

Seward & Kissel LLP

Down to the Wire: Citibank Wins Big in Revlon Appeal

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In a long-anticipated decision, on September 8, 2022, the United States Court of Appeals for the Second Circuit (the “Second Circuit”) vacated the judgment of the Southern District of New York (the “District Court”) in, In re...more

Troutman Pepper

No $500M Windfall for Lenders in Mistaken Wire Transfer Case

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On September 8, Second Circuit ruled that lenders must return $500 million to Citibank, which had mistakenly wired the funds to them. The decision vacates a 2021 Southern District of New York ruling, which held that the...more

Alston & Bird

Debtholders Are Not Entitled to Keep $500 Million Mistakes

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Our Finance and Financial Services Litigation Groups examine why the Second Circuit vacated the district court’s ruling that Revlon’s creditors could keep a mistakenly sent $500 million payment....more

Hanzo

The Lessons From Citibank's Mistaken $900 Million Transfer

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I read this story about Citibank's mistaken transfer—which cost it about half a billion dollars—a while back, and the sheer improbability of the mistake struck me. How could a banking giant make a blunder of such staggering...more

Shumaker, Loop & Kendrick, LLP

A 'Black Swan' Event, Eurofenix Spring 2021

In the context of a series of complex re-financings and roll-up transactions by Revlon in May and June, 2020, human error caused a $500 million loss for Citibank. On 16 February 2021, in the case of In re Citibank August...more

Eversheds Sutherland (US) LLP

The billion dollar bewail: Citibank cannot recover $900 million inadvertently wired to lenders

In what most will find a shocking and unjust ruling, on February 16, 2021, Judge Furman of the United States District Court for the Southern District of New York ruled in In re Citibank August 11, 2020 Wire Transfers that...more

Cadwalader, Wickersham & Taft LLP

When “Six Eyes” Just Aren’t Enough

On February 16, 2021, the United States District Court in the Southern District of New York (the “Court”) issued a decision In Re Citibank August 11, 2020 Wire Transfers1 that upheld the “discharge for value” doctrine and...more

Lowenstein Sandler LLP

Citibank’s $900 Million Black Swan

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On February 16, Judge Furman of the Southern District of New York handed down a ruling in In re Citibank August 11, 2020 Wire Transfers concluding that Citibank could not recover $900 million inadvertently wired to lenders. ...more

Shumaker, Loop & Kendrick, LLP

Client Alert: A “Black Swan Event”: New York Federal Court Rules that Lenders are Entitled to Keep $500 Million Mistakenly Paid by...

We are closely following Revlon on behalf of several creditor interests. In the context of a series of complex re-financings and roll-up transactions by Revlon in May, 2020, human error caused a $500 million loss for...more

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