Lehman Unit Sues Insurer Over $166M In CDS

Law360, New York (June 3, 2009, 12:00 AM EDT) -- In its latest battle with a former credit default swap partner, Lehman Brothers Special Financing Inc. has filed an adversary complaint against American Family Life Assurance Co. accusing the insurer of seeking to illegally modify LBSF's priority status under certain CDS agreements worth $165 million.

The specialty division of Lehman Brothers Holdings Inc. filed a 300-page adversary complaint Wednesday against Aflac in the U.S. Bankruptcy Court for the Southern District of New York, claiming the insurer – as the sole noteholder of certain CDS transactions -...
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