JP Morgan to Pay $1.42 Billion to End Most Lehman Claims

JP Morgan to Pay $1.42 Billion to End Most Lehman Claims

JPMorgan has agreed to settle most of the claims pending from their lawsuit suit with Lehman Brothers Holdings Inc. for $1.42 billion. Among other claims, the bank was accused of making wrongful transactions just before Lehman’s bankruptcy.

Lehman’s creditors stated in a motion approving the settlement that it would resolve a “significant portion” of the $8.6 billion suit, which accused JPMorgan of contributing to Lehman’s downfall in 2008.

Forty-three of the 49 claims from the lawsuit were dismissed, but the judge allowed a claim that JPMorgan made collateral transfers while Lehman was insolvent to proceed.

In its lawsuit, Lehman alleged that in the final days before bankruptcy, JPMorgan utilized its “life or death” leverage as Lehman’s primary clearing bank to extract liquidity the firm needed – including over $5 billion in cash on the day before Lehman’s collapse – as collateral to secure credit lines held by the firm’s brokerage arm, Lehman Brothers Inc.

Contact Us Today

The attorneys at Dimond Kaplan & Rothstein, P.A. have prevailed and recovered against big banks for their wrongful acts. If you have questions about an investment or suffered investment losses of any type, contact us to schedule an appointment or consultation today.

Share This Story

Share your experience with investment fraud, and contribute to a community dedicated to protection and empowerment. Together, we can unveil strategies, share insights, and build a shield against financial deceit.

Let’s Discuss Your Case Today

When fighting for your rights, you may go up against some dangerous enemies. You want an attorney flying by your side to help navigate you through the twists and turns of the legal system. 

I Want To...
No Recovery, No Fees (888) 578-6255

Subscribe to our email!

Subscribe to our email!

Subscribe to our email!

uploadmagnifiercross linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram