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Lehman debtors' master agreement party files lawsuit to recover €58.05 million payments
By Caroline Salls
Pittsburgh, Feb. 27 - Lehman Brothers Holdings, Inc. debtors Lehman Brothers Special Financing, Inc. and Lehman Brothers, Inc. were named as defendants in a lawsuit filed Friday by master agreement party Nomura Global Financial Products Inc., which is looking to recover €58.05 million in payments Nomura said it erroneously made to Lehman Brothers Special Financing.
According to the complaint filed with the U.S. Bankruptcy Court for the Southern District of New York, the payments Nomura is attempting to recover are allegedly currently in Lehman Brothers Inc.'s bank account.
Nomura said the payments were made in error because a payment agreement had terminated when Lehman Brothers Holdings filed bankruptcy shortly before the payments were made.
Although it asked Lehman Brothers Special Financing to correct the error, the plaintiff said "LBSF has given Nomura the runaround."
At first, Lehman Brothers Special Financing allegedly told Nomura that it was not sure if Nomura's funds, which were wired to a London account, were in London or in New York.
Moments before a London court hearing on an application filed by Nomura to freeze its funds, the plaintiff said Lehman Brothers Special Financing allegedly admitted that the funds were in New York.
After Nomura filed a lawsuit in New York and obtained a temporary restraining order, Lehman allegedly changed its story again and said the funds were in London.
Nomura said it has now exhausted its attempts to resolve the matter without litigation.
New York-based Lehman Brothers Holdings is the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.
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