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Oct 14, 2015

United States District Court for the Southern District of New York Largely Dismisses Lehman’s $8.6 Billion “Slush Fund” Claims Against JPMorgan

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On September 30, 2015, the United States District Court for the Southern District of New York (the “District Court”) denied the motion of Lehman Brothers Holdings Inc. (“LBHI,” and collectively with all of LBHI’s subsidiaries, “Lehman”) and its Official Committee of Unsecured Creditors (together, “Plaintiffs”) seeking damages and the recovery of $8.6 billion from Defendant JPMorgan Chase Bank, N.A. (“JPMorgan”) for the benefit of Lehman’s creditors. Instead, the District Court granted summary judgment in favor of JPMorgan on all but six of Lehman’s claims and left standing various counterclaims asserted by JPMorgan. Although the outcome was widely anticipated in the market given that the Lehman Examiner previously concluded that Lehman had but one colorable claim against JPMorgan that was “not strong,” it is a blow to the Lehman estates nonetheless and comes on the heels of a recent decision upholding Intel Corporation’s Loss calculation resulting from a failed transaction under an ISDA Master that Lehman had disputed.

View full memo, United States District Court for the Southern District of New York Largely Dismisses Lehman’s $8.6 Billion “Slush Fund” Claims Against JPMorgan

Authors and Contributors

Fredric Sosnick

Partner

Financial Restructuring & Insolvency

+1 212 848 8571

+1 212 848 8571

New York

Joel Moss

Partner

Financial Restructuring & Insolvency

+1 212 848 4693

+1 212 848 4693

New York

Solomon J. Noh

Partner

Financial Restructuring & Insolvency

+44 20 7655 5795

+44 20 7655 5795

London

Ned S. Schodek

Partner

Financial Restructuring & Insolvency

+1 212 848 7052

+1 212 848 7052

New York