Citi Faces ‘Finders Keepers’ in Fighting $500 Million Ruling (2)

A 30-year-old legal precedent that essentially says “finders keepers” in certain financial transactions will make it hard for Citigroup Inc. to get a half-billion-dollar decision against it overturned.

The bank has said it will appeal the ruling -- issued Tuesday by a federal judge -- that rejected its attempt to recover $504 million it accidentally sent to asset managers for Revlon Inc. lenders last summer. The recipients include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management.

It won’t be easy, said Columbia Law School professor Eric Talley, an expert in corporate law and finance. “Citi ...