Aetna Blaming Wrong Lehman Affiliate For $48.7M Trade: Atty

Law360, New York (January 17, 2013, 6:38 PM EST) -- Aetna Life Insurance Co. can't blame an asset management affiliate of Lehman Brothers Holdings Inc. for a shady $48.7 million securities transaction just because a Lehman reinsurance affiliate is insolvent, the Lehman asset management affiliate's attorney told a New York state appeals court Thursday.

Nonparty Lehman reinsurance affiliate Lehman Re Ltd., which filed insolvency proceedings in Bermuda, was the party Aetna had its contracts with, not Lehman affiliate Appalachian Asset Management Corp., which was never bankrupt, according to Appalachian attorney Jennifer M. Oliver of Weil Gotshal...
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