Lehman Pays $45M To End Coverage Battle Over Dicey MBS

Law360, New York (March 20, 2013, 4:57 PM EDT) -- A New York bankruptcy judge on Tuesday signed off on a $45 million deal resolving a fight between Lehman Brothers Holdings Inc.'s Australian subsidiary and various insurers over hundreds of investor suits accusing it of pushing risky mortgage-backed securities. 

U.S. Bankruptcy Judge James M. Peck gave the nod to Lehman Brothers Australia Ltd.’s settlement with 10 primary and excess insurers, which will collectively pay $45 million to resolve a dispute over coverage of more than 350 investor claims brought by Australian pension funds, religious entities, local...
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