Bloomberg News

Assured Guaranty Calls Lehman Derivatives Claims ‘Without Merit’

November 30, 2011

Nov. 29 (Bloomberg) -- Assured Guaranty Ltd. said it will fight a lawsuit by Lehman Brothers Holdings Inc.’s U.K. unit, in which Lehman claims it’s owed more than $1 billion from an Assured subsidiary on derivative transactions.

Lehman Brothers International (Europe) sued AG Financial Products Inc. yesterday in New York, saying the Assured unit improperly calculated termination payments under derivative deals.

“We believe the claims by Lehman Brothers International (Europe) are without merit, and we will vigorously defend the lawsuit,” Ashweeta Durani, a spokeswoman for Assured, said in an e-mailed statement.

Lehman said in the complaint that “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 filing.

Marshall Huebner, a lawyer for the Lehman unit, didn’t immediately respond to an e-mail seeking comment.

The case is Lehman Brothers International (Europe) v. AG Financial Products Inc., 653284-2011, New York State Supreme Court, New York County (Manhattan).

--Editors: Charles Carter, Mary Romano

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

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net; John Pickering at jpickering@bloomberg.net.


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