Lehman Unit To Face Aetna's $49M Suit, Appeals Court Rules

Law360, New York (July 30, 2013, 5:17 PM EDT) -- A nonbankrupt Lehman Brothers Holdings Inc. asset management affiliate and others must face Aetna Life Insurance Co.'s allegations that they improperly saddled the insurer with $48.7 million in risky securities, a New York state appeals court ruled Tuesday.

Lehman affiliate Appalachian Asset Management Corp. and several individuals who worked at Appalachian or nonparty Lehman reinsurance affiliate Lehman Re Ltd., which is undergoing insolvency proceedings in Bermuda, cannot escape the suit accusing them of substituting in the risky securities on the eve of Lehman Brothers' collapse, the...
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