News 19 Feb. 2016

Lehman Brothers to Receive $1.42B from JPMorgan to Settle Claims

Curtis represented Lehman Brothers Holdings Inc. (LBHI) in the litigation and settlement of claims brought against JPMorgan seeking the return of billions of dollars in collateral that JPMorgan demanded and withheld in the weeks prior to the LBHI bankruptcy petition, as well as damages for JPMorgan’s role in accelerating the bankruptcy. The settlement also resolves claims arising out of JPMorgan’s close-out of derivatives contracts purportedly triggered by the LBHI bankruptcy filing.

United States Bankruptcy Judge Shelly Chapman approved the settlement under which LBHI will receive $1.42 billion from JPMorgan. This settlement resolves a significant portion of LBHI’s claims against JPMorgan, one of LBHI’s largest creditors.

The Curtis team was led by partners Joseph D. Pizzurro, Michael J. Moscato, Peter J. Behmke, L.P. Harrison 3rd, and Andrew H. Seiden.