Lehman lawyers in attempt to claw back $10m from BarCap
LAWYERS representing Lehman Brothers have filed a $10bn (£5.9bn) court case against Barclays Capital over assets transferred during Lehman’s bankruptcy.
Alvarez and Marsal, the consultancy hired after Lehman filed for insolvency, wants to claw back ‘windfall’ profits it claims BarCap received after buying the New York group.
Lawyers say the contract agreed in September 2008 contained a loophole that allowed BarCap to book an immediate $8.2m profit from excess assets it took control of in its $1.75bn purchase of Lehman’s business.
The news comes after initial court documents were filed in September.
Documents submitted on Monday said: “The windfall to Barclays was not disclosed to the court, the Lehman boards or Lehman’s lawyers so as to allow the transfer to Barclays of billions of dollars in excess assets.”
Representatives asked the court to order Barclays to “disgorge to Lehman any ill-gotten gains it obtained” and pay damages.
Sources close to Barclays argued the transaction was legally sound and there were no competing bidders offering alternatives.
A BarCap spokesman added: “This is an opportunistic claim and an attempt by the estate to re-trade the deal now the economy has stabilised.”