Citi Defeat on $500 Million Error Was Wrong, Groups Say (1)

Investment firms shouldn’t be allowed to keep half a billion dollars Citigroup Inc. accidentally sent them because the payment wasn’t due for three more years, legal experts and advocacy groups said in asking a court to overturn the ruling.

A group of law professors said in a brief filed Thursday with the federal appeals court in Manhattan that the lower-court ruling, allowing Revlon Inc. lenders to hold on to $504 million the bank wired them last August, misapplied legal precedent and could harm the industry’s standards.

“The sheer magnitude of the transfer, constituting nearly 100 times the size of defendants’ ...