Hedge funds shouldn’t be able to keep roughly $500 million they were mistakenly paid by Citigroup Inc. on a loan owed by now-bankrupt cosmetics company Revlon Inc., a federal appeals court ruled Thursday.
The U.S. Second Circuit Court of Appeals said a lower court erred in allowing Revlon lenders including Brigade Capital Management, Symphony Asset Management LLC and HPS Investment Partners LLC to retain the “huge windfall” they collected from the bank’s back-office blunder.
