Bloomberg News

Goldman Sachs Says Lehman Document Demand Designed to Harass

June 14, 2011

June 14 (Bloomberg) -- Goldman Sachs Group Inc. accused Lehman Brothers Holdings Inc. of harassment by making a “baseless” demand for documents as part of an investigation the failed investment bank is conducting.

Lehman’s effort to force Goldman Sachs to hand over documents related to a probe of events leading up to its collapse in September 2008 is improper, Goldman Sachs said in a court filing yesterday in U.S. Bankruptcy Court in Manhattan.

Lehman’s move to obtain a court order “is designed purely to harass Goldman Sachs and should be denied as baseless, unnecessary and unwarranted,” Goldman Sachs said.

Lehman has said it is investigating third parties that may have taken actions before its bankruptcy that “interfered with and damaged” its business, according to court papers. In a request to Goldman Sachs, Lehman sought information related to “alleged false rumors” and the short-selling of Lehman securities, Goldman Sachs said in its filing.

Goldman Sachs is “deliberately moving at glacial pace” in handing over information, Lehman said. Lehman wants U.S. Bankruptcy Judge James Peck to order Goldman Sachs to produce documents it seeks within two weeks of approving the request.

‘Slightest Bit’

Goldman Sachs, based in New York, has already provided documents, previously given to the Securities and Exchange Commission and the U.S. Attorney’s Office, that don’t support allegations that Goldman Sachs was spreading rumors about Lehman, it said. Lehman also hasn’t provided “the slightest bit of evidence” that Goldman Sachs was involved in any improper activity affecting Lehman, Goldman Sachs said in its filing.

Goldman Sachs made “diligent progress” in preparing to respond to Lehman’s request for additional documents, and the timeline Lehman has proposed is burdensome, the company said. It has proposed producing documents by July 22.

Kimberly Macleod, a Lehman spokeswoman, declined to comment.

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

--Editors: Mary Romano, Stephen Farr

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net.

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


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