Lehman Sues Citi To Reclaim $2.5B In Transferred Funds

Law360, New York (February 9, 2012, 8:00 PM EST) -- Lehman Brothers Holdings Inc. sued Citibank NA in New York bankruptcy court Wednesday in an effort to recover $2.5 billion that it transferred to a Citibank account several months before Lehman's collapse, saying Citibank is now wrongfully latching onto the funds.

In the suit, Lehman also made a move to slash some $2 billion in "inflated and legally unsupported" claims asserted by Citibank in Lehman's bankruptcy case.

"This action seeks to remedy the harm perpetrated as a result of Citibank’s efforts to elevate its position against...
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