Aetna Suit Over $49M Lehman Securities Sale Survives

Law360, New York (April 13, 2012, 8:10 PM EDT) -- A New York state judge largely refused Friday to dismiss Aetna Life Insurance Co.'s allegations that a Lehman Brothers Holdings Inc. affiliate improperly sold $48.7 million in Aetna assets to buy inferior securities of a troubled reinsurer, saying the alleged swap offends public policy.

Judge Charles E. Ramos said that Aetna had put forward sufficient evidence to support its allegations that Lehman affiliate Appalachian Asset Management Corp. and several Lehman executives had improperly substituted in lower quality securities in a trust account Appalachian maintained for Aetna...
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