Former Lehman affiliate objects to possible $90 million insurance release

Group claims former Lehman execs want the $250 million D&O policy funds for themselves

The fallout from the financial crisis continues to unfold in courtrooms across the country. The latest drama surrounds a now-defunct Lehman Brothers’ affiliate and former company officials who continue to wage war in court over multiple lawsuits.

A group of former leaders from Lehman’s mortgage-backed securities issuer, Structured Asset Securities Corp. (SASCO), said in a court filing yesterday that the proposed release of $90 million in insurance money to settle an investor lawsuit against ex-CEO Richard Fuld and other Lehman executives may not leave enough money to cover a settlement in their own investor lawsuit.

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