SDNY COURTHOUSE, Sept. 8 – As Citibank tries to recover money it paid on Aug. 11, 2020, the virtual/Zoom trial began Dec. 9 in U.S. District Court for the Southern District of New York, Judge Jesse M. Furman. Inner City Press reported daily on the lawsuit, below.
On February 16, Judge Furman ruled that the defendants could keep the money.
On September 8, 2022, the Court of Appeals for the Second Circuit reversed: “Plaintiff Citibank, NA, the lenders’ administrative agent on 4 a seven-year, $1.8 billion syndicated loan to Revlon Inc., makes Appeal from the 5th Judgment of the United States District Court for the Southern District of 6 New York (Jesse M. Furman, J.) in favor of the defendants, the loan servicers of certain lenders, who received and refused to repay the prepayment accidental and unintentional 8 Citibank loan BankAmerica 10 International, 570 NE2d 189 (NY 1991), held that the release-for-value rule11 was a defense to Citibank’s restitution action. error and because the 13 lenders were not entitled to reimbursement at the time, the Bank Worms rule does not protect the defendants. The judgment is VOID and the case is RETURNED to the district court.” Full decision here.
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