Lehman Unit Says AG Financial Owes $1.4B Contract Fee

Law360, New York (November 28, 2011, 9:09 PM EST) -- A European subsidiary of bankrupt Lehman Brothers Holdings Inc. sued AG Financial Products Inc. in New York state court Monday for allegedly breaching a contract for securities transactions by improperly calculating a termination amount far less than the $1.4 billion it claims it is owed.

Lehman Brothers International (Europe) says AG's calculation that LBIE owes $24.8 million upon early termination of the contract was calculated “in bad faith and far outside the bounds of commercial responsibility.”

LBIE claims that under a proper calculation of the early...
To view the full article, register now.