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Lehman Dec 23
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Lehman, Ex-Employees Strike $38M Deal To End Bonus Fight
Dec 22, 2015 | Law360
By Jonathan Randles
Lehman Brothers Inc. said Monday in New York bankruptcy court that it has agreed to settle litigation with four former employees over bonuses they say they were owed after the firm collapsed in 2008, agreeing to set aside $38 million to satisfy their claim against the estate. -
Group That Helped Lehman Unwind Wants to Get Paid
Dec 22, 2015 | Dow Jones - Daily Bankruptcy Review
By Katy Stech
A group of Wall Street banks and hedge funds---including Paul Singer 's Elliott Management Corp .---are fighting to be reimbursed nearly $20 million in legal fees spent on Lehman Brothers Holdings Inc.'s historic bankruptcy. -
Mich. Funds Win Cert. In Northern Trust Negligence Action
Dec 22, 2015 | Law360
By Pete Brush
A Chicago federal judge on Monday certified a class including two Pontiac, Michigan, retirement funds that claim Northern Trust Co. negligently breached securities-lending contracts by steering them toward risky assets including Lehman Brothers Holdings Inc. and CIT Group Inc. shares and failing to divest as markets collapsed. -
There's A New Exchange Launching Today
Dec 22, 2015 | CNBC
By Bob Pisani
...The second category of shareholders consist of two affiliated entities: Thor Investment Holding LLC, which owns approximately 16 percent, and TIP-1 LLC, which owns approximately 20 percent. No individuals are directly named as owners, however, former Lehman Brothers CEO Dick Fuld has been identified as a part-owner...
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
LBI
Legal Fee Reimbursement
Northern Trust Co.
National Stock Exchange - Dick Fuld
Full Text of Stories Below
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Lehman, Ex-Employees Strike $38M Deal To End Bonus Fight
Dec 22, 2015 | Law360
By Jonathan Randles
Lehman Brothers Inc. said Monday in New York bankruptcy court that it has agreed to settle litigation with four former employees over bonuses they say they were owed after the firm collapsed in 2008, agreeing to set aside $38 million to satisfy their claim against the estate.
LBI, the brokerage arm of Lehman Brothers, filed a stipulation laying out the terms of the deal with ex-employees J. Robert Chambers, Guy Hoffman, R. Kyle Kettler and P. Mathew Verghese. Litigation has challenged whether LBI should be on the hook for the bonus compensation even though Barclays paid bonuses to employees after the investment bank acquired the debtors business....Chambers is a former LBI trader based out of Houston who managed Lehman Energy Fund and prior to that was a Lehman research analyst covering the energy sector. Chambers is now the president and CEO of Chambers Energy Capital. Hoffman and Kettler also worked at Lehman Energy Fund and also work at CEC.
Under the terms of the settlement, $37,989,050 will be allowed as an unsecured claim and the remaining $10,950 will be allowed as a priority claim; $4.3 million of the total claim will be subordinated. Of that amount, Chambers will get an unsecured claim of $23,653,451, Hoffman will get an unsecured claim of $11,397,793, Verghese will get an unsecured claim of $2,024,065 and Kettler will get an unsecured claim of $913,739.
"The Trustee has taken an appropriate step to resolve one of the few remaining claims as he moves ahead with closing out the estate," the trustee's spokesman Jake Sargent said in an email.
The dispute stems from the hurried sale of LBI to Barclays in the months following Lehman Brothers' collapse in September 2008. As part of the sales agreement, Barclays agreed to employ thousands of former LBI employees and pay them bonuses they earned while they were employed at Lehman. Chambers was among the LBI employees that transferred to Barclays...For full story: http://www.law360.com/articles/741050/lehman-ex-employees-strike-38m-deal-to-end-bonus-fight
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Group That Helped Lehman Unwind Wants to Get Paid
Dec 22, 2015 | Dow Jones - Daily Bankruptcy Review
By Katy Stech
A group of Wall Street banks and hedge funds---including Paul Singer 's Elliott Management Corp .---are fighting to be reimbursed nearly $20 million in legal fees spent on Lehman Brothers Holdings Inc.'s historic bankruptcy.
In court papers, lawyers for Bank of New York Mellon , U.S. Bank and others argued that their work in helping the nation's then-fourth-largest investment bank smoothly close down was substantial enough to justify the tab to be paid out of the collapsed bank's remaining money....
Subscription needed, for full story: https://bankruptcynews.dowjones.com/Article?an=DJFDBR0120151222ebcmodizu&cid=32135012&ctype=ts&pid=310&ReturnUrl=https%3a%2f%2fbankruptcynews.dowjones.com%2fArticle%3fan%3dDJFDBR0120151222ebcmodizu%26cid%3d32135012%26ctype%3dts%26pid%3d310
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Mich. Funds Win Cert. In Northern Trust Negligence Action
Dec 22, 2015 | Law360
By Pete Brush
A Chicago federal judge on Monday certified a class including two Pontiac, Michigan, retirement funds that claim Northern Trust Co. negligently breached securities-lending contracts by steering them toward risky assets including Lehman Brothers Holdings Inc. and CIT Group Inc. shares and failing to divest as markets collapsed.
Chicago U.S. District Judge Jorge L. Alonso defined the class as plaintiffs not governed by the Employee Retirement Income Security Act who participated in Northern Trust's securities-lending pools. The City of Pontiac Police and Fire Retirement System and the Board of Trustees of the City of Pontiac General Employees Retirement System were appointed lead plaintiffs.
Judge Alonso rejected Northern Trust's argument that payments and fee concessions it made to the plaintiffs totaling more than $200,000 made up for their Lehman and CIT realized losses.
The judge found that plaintiffs have the right to prove up additional contract damages because of the defendants' allegedly negligent failure to sell Lehman, CIT and other issues — including residential mortgage-backed securities — at a reasonable time.
"[Northern Trust] offers no authority for the notion that expectation damages, which is normally the measure of damages for breach of contract, are not recoverable here," the judge wrote...For full story: http://www.law360.com/articles/740686/mich-funds-win-cert-in-northern-trust-negligence-action
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There's A New Exchange Launching Today
Dec 22, 2015 | CNBC
By Bob Pisani
A new stock exchange is launching today, or, more accurately, an old one is re-launching.The National Stock Exchange (NSX) is re-launching today to trade equities and ETFs. It was one of the oldest stock exchanges in the country, founded in Cincinnati as the Cincinnati Stock Exchange in 1885.
...The ownership of the NSX, according to documents filed with the SEC, consists of two categories of shareholders. One group consists of 12 individuals who own approximately 64 percent of the outstanding shares, described as "securities industry and technology professionals with senior executive managerial experience in areas including capital markets and investment management, management, exchange operations, electronic trading, and systems architecture and development." The second category of shareholders consist of two affiliated entities: Thor Investment Holding LLC, which owns approximately 16 percent, and TIP-1 LLC, which owns approximately 20 percent.
No individuals are directly named as owners, however, former Lehman Brothers CEO Dick Fuld has been identified as a part-owner.
As for the other exchange waiting to get out...IEX, whose application is still in front of the SEC, Suvlaka had little to say, other than to note the somewhat intense commentary from the other exchanges.
For full story: http://www.cnbc.com/2015/12/22/theres-a-new-exchange-launching-today.html
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
LBI
Legal Fee Reimbursement
Northern Trust Co.
National Stock Exchange - Dick Fuld
Full Text of Stories Below
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