Bloomberg News

U.S. Judge Delays Decision on Reviewing Lehman’s JPMorgan Suit

January 03, 2012

Jan. 2 (Bloomberg) -- U.S. District Judge Richard Sullivan in New York will defer a decision on whether bankrupt Lehman Brothers Holdings Inc.’s lawsuit againt JPMorgan Chase & Co. belongs in district court.

Sullivan said a federal bankruptcy judge must first rule on the bank’s move to dismiss the case, according to a Dec. 30 court filing.

New York-based JPMorgan, the biggest U.S. bank, is fighting the lawsuit by Lehman that alleges the lender helped cause its 2008 collapse by demanding the $8.6 billion in collateral. The bank also is defending $6 billion in claims that

Lehman objects to and arguing it acted properly in seeking security for loans made during the credit crisis.

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

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net


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