(Updates with complaint in second paragraph.)
Nov. 28 (Bloomberg) -- Lehman Brothers Holdings Inc.’s U.K. unit sued AG Financial Products Inc. over derivative transactions, saying it is owed more than $1 billion.
AG Financial Products improperly calculated termination payments under derivative deals with Lehman Brothers International (Europe), the Lehman unit said in a complaint filed today in New York State Supreme Court.
“AGFP has acted in bad faith and far outside the bounds of commercial reasonability and market practice in determining the amount payable,” LBIE said.
LBIE said “a proper calculation” shows AG Financial Products owes it more than $1 billion. AG Financial Products claimed it was owed $24.8 million from LBIE, according to the complaint.
AG Financial Products is a unit of Assured Guaranty Ltd., according to Assured’s 2010 annual report. Ashweeta Durani, a spokeswoman for Assured, didn’t immediately comment on the lawsuit.
The case is Lehman Brothers International (Europe) v. AG Financial Products Inc., 653284-2011, New York State Supreme Court (Manhattan).
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