Citigroup Gets Freeze on Brigade Money in $900 Million Error
- Brigade says money was wired to 40 funds so it can’t return it
- Bank tells judge hedge fund is only one to ‘flat out’ refuse
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Citigroup Inc. scored a temporary court order freezing $175 million that Brigade Capital Management LP declined to return after the bank accidentally transferred more than $900 million to Revlon Inc. lenders.
The order followed a hearing Tuesday in which the bank and the hedge fund faced off over Citigroup’s expensive blunder. The two will be back in court on Wednesday as the judge determines the next steps in their legal battle, including whether to hold a hearing on the bank’s request for a preliminary injunction forcing Brigade to give the money back while the case proceeds. Citigroup sued Brigade on Monday.