Defunct financial institution Lehman Brothers has asked a US court to overturn asset transfers by Barclays, which acquired most of the firm's American operations following its collapse in 2008.
Bloomberg has reported that the former banking giant has accused Barclays of raking in a "windfall" of around $11 billion subsequent to its buyout through what it claims were unauthorized handovers of Lehman resources to the UK company.
"The sale transaction that was disclosed to the court was based upon false premises from the very outset," said Lehman's lawyer Robert Gaffey, presenting his case to a bankruptcy judge yesterday (November 22nd 2010).
Lehman also insists that it was encouraged to file for Chapter 11 bankruptcy by the Securities and Exchange Commission and Federal Reserve. Its lawsuit is related to its ongoing struggle to find money to pay off remaining creditors.
The news came as it was revealed that the financial implications brought about by Lehman's failure have passed the $1 billion mark.
By Claire Archer