Judge Cuts Lehman Unit Down To Size Over $16B Claim

Law360, New York (January 26, 2012, 5:01 PM EST) -- A New York bankruptcy judge on Thursday slashed the amount of money that Lehman Brothers Holdings Inc. will have to set aside to cover a disputed $15.4 billion claim by its Swiss unit, finding that Lehman only needed to reserve $3 billion.

Even before he ruled, U.S. Bankruptcy Judge James M. Peck chastised the Swiss subsidiary, Lehman Brothers Finance AG, saying that it has been painted into a corner and is now acting "incredibly unreasonable in every way" and had filed "grotesquely overstated claims."

Judge Peck...
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