Lehman, Barclays Spar Over $2B Compensation Contract

Law360, New York (September 7, 2011, 3:55 PM EDT) -- Lehman Brothers Holdings Inc. and Barclays Capital Inc. went head-to-head Wednesday in a New York bankruptcy court over whether Barclays violated a $2 billion employee compensation contract when it purchased Lehman's North American assets just after the investment firm collapsed.

Lehman said the purchase agreement included a provision that required Barclays to pay a solid $2 billion to cover 2008 bonuses once employees were transferred over to Barclays. But Barclays argued that figure was merely a good-faith estimate, that it was also intended to cover severance...
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