Citi Seeks To KO Lehman Trustee's $1.3B Clawback Suit

Law360, New York (May 26, 2011, 10:56 PM EDT) -- Citigroup Inc. on Thursday asked a New York bankruptcy judge to dismiss most of the $1.3 billion suit the liquidation trustee of Lehman Brothers Inc. filed to claw back cash and assets, saying that the claims were entirely without merit.

The financial services giant contended that claims relating to $1 billion Lehman deposited with Citibank NA in September 2008 that trustee James Giddens was attempting to recoup was a so-called swap agreement protected by safe harbor provisions in the Bankruptcy Code.

The $1 billion swap agreement...
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