Judge OKs Lehman, BofA's $4.5B Claims Reduction Deal

Law360, New York (October 19, 2011, 9:10 PM EDT) -- A New York federal bankruptcy judge signed off Wednesday on Bank of America Corp.'s agreement to reduce by $4.5 billion its derivative claims against Lehman Brothers Holdings Inc. over thousands of securities transactions it performed for the failed investment firm.

Lehman and Bank of America reached the settlement in September but it still needed approval from U.S. Bankruptcy Judge James M. Peck.

The deal also calls for the bank to back Lehman's reorganization plan, return $356 million to Lehman and drop its appeal of a $500...
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