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.

EN   ES   PT     
855.650.5675



Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236




Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930




New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217




West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887




Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182