Lehman Sues Citi for $2.5 Billion

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Lehman Brothers is alive! It walks, it talks, it sues!

On Wednesday, Lehman filed suit against Citigroup (C) in an attempt to reclaim $2.5 billion that Lehman says it transferred to Citi before Lehman’s 2008 bankruptcy filing, the Wall Street Journal reports. Lehman claims that Citi asked for the money to be transferred to the bank as storm clouds began to gather over Wall Street, and that it was placed in a segregated account. A Citi spokeswoman told the Journal that the suit “is an unjustified attempt by the Lehman estates to renege on their obligations to Citi, and claw back assets to which they have no right.”

Lehman, whose assets are being managed by a bankruptcy team, also has an ongoing case against JPMorgan Chase (JPM), which has in turn sued Lehman.



Original Article Source by Barrons.com