Judge Rejects Recusal Bid In Lehman Deferred Comp. Dispute

Law360 (January 28, 2020, 3:00 PM EST) -- A New York bankruptcy judge Tuesday refused to recuse herself from hearing the latest attempt by former Shearson Lehman Brothers Inc. executives to claim $300 million in deferred pay, saying the ex-employees had misinterpreted remarks she made on the case.

At a hearing Tuesday, U.S. Bankruptcy Court Judge Shelley Chapman denied a request by the ex-employees to recuse herself from hearing their latest adversary action seeking the funds, saying the claims in the recusal motion about her remarks at a December hearing were "at odds with what occurred."

Since 2009 — a year after Lehman Brothers Holdings declared bankruptcy in the...

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