Barclays Doesn't Owe Ex-Lehman Workers $500M: Judge

Law360, New York (September 14, 2011, 6:34 PM EDT) -- A New York bankruptcy judge on Wednesday ruled that Barclays Capital Inc. does not owe Lehman Brothers Holdings Inc. $500 million over bonuses Barclays allegedly promised to pay ex-Lehman employees when it bought Lehman's North American broker-dealer business.

Lehman had claimed that Barclays, which bought Lehman's business shortly after Lehman declared bankruptcy, paid out only $1.5 billion of $2 billion in promised bonuses to ex-Lehman workers. Lehman wanted the allegedly missing $500 million.

But U.S. Bankruptcy Judge James M. Peck ruled that Barclays never promised it...
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