Retirement Community Sues Over Lehman Swap Deals

Law360, New York (February 10, 2011, 6:29 PM EST) -- A nonprofit retirement community in Arizona lodged an adversary suit Thursday against a unit of bankrupt financial services giant Lehman Brothers Holdings Inc. in an attempt to void two swap agreements.

The suit, filed in the U.S. Bankruptcy Court for the Southern District of New York, sought a declaratory judgment that plaintiff Friendship Village of Tempe had a contractual right to terminate the swap agreements, that such termination was properly affected in August 2009 and that the swap agreements have therefore been terminated.

“[This] is the...
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