Bloomberg News

Barclays Seeks Dismissal of Lehman $500 Million Bonus Claim

June 07, 2011

(Updates with request to judge in second paragraph.)

June 7 (Bloomberg) -- Barclays Plc, unsuccessfully sued by Lehman Brothers Holdings Inc. for $11 billion, is seeking dismissal of the defunct firm’s remaining claim for $500 million in allegedly unpaid bonuses.

Lehman asked a U.S. bankruptcy judge in May to rule on its claim, saying the U.K. bank didn’t pay all of the $2 billion in bonuses it agreed to when it bought Lehman’s North American business in 2008. Barclays, which has said it paid all the required bonuses and other compensation, said it would ask Judge James Peck in Manhattan on June 17 to dismiss the complaint, according to a court filing.

“There can be no genuine dispute that the $2 billion number that was listed on the 9/16/08 financial schedule initialed by Steve Berkenfeld was an estimate for the compensation obligations Barclays was assuming,” Barclays’s lawyer Jonathan Schiller said in a letter to Peck. Included in the amount was severance payments, he said.

Berkenfeld, a former Lehman executive, is now with London- based Barclays.

Kimberly Macleod, a Lehman spokeswoman, didn’t immediately respond to an e-mail seeking comment.

Yesterday, Peck ordered Barclays to return $2 billion in margin assets to the trustee liquidating the remains of Lehman’s brokerage and pay about $270 million in interest. Barclays said it would appeal the ruling.

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

--Editors: Peter Blumberg, Stephen Farr

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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