Bloomberg News

Lehman Accuses Goldman of Trying to Delay Bankruptcy Probe

June 01, 2011

June 1 (Bloomberg) -- Lehman Brothers Holdings Inc. accused Goldman Sachs Group Inc. of deliberately trying to delay a bankruptcy investigation by moving at a “glacial pace” in turning over documents related to the probe.

Lehman claimed Goldman Sachs is deliberately moving slowly to run out a deadline for providing information for Lehman’s probe into whether rumors about its condition damaged its business during the 2008 financial crisis, according to a filing yesterday in U.S. Bankruptcy Court in Manhattan. Attorneys for Lehman said the documents are needed to determine whether to make claims against Goldman Sachs, according to the filing.

“Goldman Sachs is deliberately moving at a glacial pace in an effort to run out the statute of limitations without producing the requested documents,” Lehman said in the filing.

Employees of Goldman Sachs “may have been involved in originating or spreading rumors about Lehman,” according to yesterday’s filing.

In March, Lehman sought e-mails and instant messages from Goldman Sachs custodians in New York who were involved in marketing prime brokerage services to hedge funds and proprietary trading of Lehman securities in London, according to the filing. After a series of negotiations, Goldman Sachs said it had begun searching for documents from 11 of 37 custodians and was unable say when that search would be completed, according to yesterday’s filing.

Lehman is asking U.S. Bankruptcy Judge James Peck to order Goldman Sachs to provide the documents within two weeks of his decision.

Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment yesterday.

Lehman filed the largest bankruptcy in U.S. history on Sept. 15, 2008.

The bankruptcy case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Peter Blumberg, Michael Hytha

To contact the reporter on this story: Karen Gullo in San Francisco federal court at kgullo@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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