JPMorgan Ducks Claims In Lehman's $9B Suit Over Transfers

Law360, New York (April 19, 2012, 11:25 PM EDT) -- A New York bankruptcy judge on Thursday trimmed Lehman Brothers Holdings Inc.'s suit accusing JPMorgan Chase Bank NA of bilking it out of $8.6 billion days before its collapse, saying many of the transfers at issue fall under the Bankruptcy Code's safe harbor provisions.

U.S. Bankruptcy Judge James Peck granted JPMorgan's motion to dismiss claims of constructively fraudulent transfers and preferential transfers, but will allow claims seeking to avoid and recover actual fraudulent transfers to survive the pleading stage.

“As a result of a count-by-count analysis,...
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