Citigroup Sues Brigade Capital Over Mistaken Revlon Transfer (2)

Citigroup Inc. asked a federal court to order Brigade Capital Management LP to return its share of more than $900 million that the bank mistakenly wired to Revlon Inc. lenders, some of which are locked in a bitter fight with the struggling cosmetics giant.

The bank has recouped less than half of the money, which it blamed on a clerical error. Some of the lenders are refusing to give it back, including three firms that claimed Revlon was in default on a loan and should have repaid them anyway, according to people with knowledge of the matter.

In a lawsuit ...