Lehman Asks To Settle $7.7B In MBS Suits For $40M

Law360, New York (November 10, 2011, 7:15 PM EST) -- Lehman Brothers Holdings Inc. asked a New York bankruptcy court Wednesday to let it settle a $7.7 billion class action over mortgage-backed securities for $40 million, most of which would be paid by insurers.

Lehman, which is not a defendant in the class action filed by investors who purchased a total of about $20 billion in mortgage debt from an affiliate, would end up paying only about $8.3 million toward the settlement.

The remaining $31.7 million — or 79 percent of the total settlement amount —...
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