Lehman Sues Wintrust Over Contract Breach On Loans

Law360, New York (December 9, 2009, 12:45 PM EST) -- Lehman Brothers Holdings Inc. is accusing Wintrust Mortgage Corp. of breaching contracts and shirking its obligation to buy back mortgage loans originated by its merger partner, SGB Corp.

In an amended complaint filed Monday in the U.S. District Court for the District of Colorado, Lehman said Wintrust breached representations, warranties, covenants and other provisions of contracts requiring the repurchase of loans.

SGB merged with Wintrust in 2008, with the surviving entity assuming SGB's liabilities. Before the merger, SGB originated a number of loans in Colorado and...
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