Lehman Sues To Slash Syncora’s $1.3B Mortgage Note Claim

Law360, New York (May 03, 2013, 2:19 PM ET) -- Lehman Brothers Holdings Inc. on Thursday sued Syncora Guarantee Inc. in New York bankruptcy court, aiming to slash the bond insurer’s $1.3 billion claim alleging the fallen investment giant misled it about the quality of mortgage-backed notes it insured.

In an adversary proceeding launched in Manhattan, Lehman urged a judge to cut a substantial part of Syncora’s claim based on allegations that Lehman was dishonest about the quality of certain notes backed by mortgages when it brought Syncora on to insure them.

U.S. Bank NA, the...
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