Lehman Wants Stay Modified For ARS Suit Payout

Law360, New York (December 2, 2009, 12:59 PM EST) -- Lehman Brothers Holdings Inc. has asked for relief from the automatic stay in its bankruptcy, seeking to tap its directors and officers policies to pay out $1.7 million to Openwave Systems Inc. to settle an auction rate securities fraud suit.

Lehman filed a motion Tuesday in the U.S. Bankruptcy Court for the Southern District of New York to modify an automatic stay imposed by its Chapter 11 filing to allow the settlement payment.

The investment bank's holding company said the relief was warranted because none of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.