Bloomberg News

Goldman Sachs, Lehman End Fight Over Documents for Probe

June 15, 2011

(Updates with court announcement in second paragraph.)

June 15 (Bloomberg) -- Goldman Sachs Group Inc. settled a dispute with Lehman Brothers Holdings Inc. over documents related to a short-selling investigation the failed investment bank is conducting.

A lawyer for Goldman Sachs announced the settlement today during a hearing in U.S. Bankruptcy Court in Manhattan. He didn’t disclose details. Goldman Sachs is competing with Lehman and a creditor group led by hedge fund Paulson & Co. to propose a liquidation plan for the defunct firm.

Goldman Sachs yesterday accused Lehman of harassment in making a “baseless” demand for documents as part of a probe of whether rival firms contributed to its September 2008 failure by putting pressure on its stock through rumors and so-called short sales.

Lehman said the fifth-biggest U.S. bank was “deliberately moving at glacial pace” in handing over information. It asked U.S. Bankruptcy Judge James Peck to order New York-based Goldman Sachs to produce the documents within two weeks.

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

--Editors: Stephen Farr, Andrew Dunn

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