Lehman Trustee Hits RBS With $345M Contract Suit

Law360, New York (August 22, 2011, 5:36 PM EDT) -- The trustee overseeing the Lehman Brothers Inc. liquidation sued the Royal Bank of Scotland NV Friday in New York bankruptcy court, claiming the bank owed the defunct financial firm $345 million under a foreign currency transaction contract.

Lehman trustee James W. Giddens accused RBS of withholding the money "in order to gain leverage and an improper advantage over LBI, its estate and other creditors."

RBS, which owes the money pursuant to an International Swap Dealers Association Inc. master agreement covering foreign currency transactions, has refused to...
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