Back to all announcements

Lehman and Barclays sale dispute to go before appeals panel

The now defunct brokerage of Lehman Brothers has told an appeals court it is entitled to billion of dollars it claims was wrongly included in its 2008 sale to Barclays.

Reuters reports the long-running dispute has been rumbling on since the hectic sale of the brokerage's assets to Barclays after the $639 billion bankruptcy of parent company Lehman Brothers in September 2008.

The brokerage says the $250 million deal did not include the brokerage's cash assets, although Barclays claims otherwise, citing a so-called clarification letter signed after the deal was approved.

William Maguire, the brokerage's lawyer, told the news provider "it was made very clear" in the asset purchase agreement "what was going to Barclays and what was staying behind".

"The deal didn't exclude just some cash, it excluded all cash," he added.

In 2011, US Bankruptcy Judge James Peck ruled that the clearance box assets should go to Barclays and the margin assets should stay with the brokerage. However, Judge Katherine Forrest in federal court in New York partially reversed Peck's ruling in June 2012, assigning both the margin and the clearance assets to Barclays.

By Gary Cooper