Fourteen former Lehman Brothers executives, including former CEO Richard Fuld, asked a bankruptcy court judge to allow them access to $90 million of insurance funds to settle a lawsuit with investors. Investors had sued Lehman after the company sold them more than $30 billion of equity and debt before it filed bankruptcy.
Before a settlement can be approved—or even considered—however, U.S bankruptcy court judge James Peck must allow the insurance funds to be released from Lehman’s liability policy worth $250 million. According to stay provisions of the U.S. Bankruptcy Codes, those funds are off limits until a judge releases them.
Lehman’s bankruptcy in 2008 is considered a major factor in the global financial crisis.
Read more about this potential settlement on Reuters.