Just when things seemingly couldn’t be worse for the now-defunct Lehman Brothers Holdings Inc., they actually got worse.
Already embroiled in fending off litigation from the company’s investors and affiliates, Lehman yesterday announced that it has dropped its bid to collect $11 billion from Barclay’s Plc. The two companies had been squabbling for years in regard to a dispute over the sale of Lehman operations.
U.S. Bankruptcy Judge James Peck had ruled in February that Barclays owed Lehman nothing after Lehman accused Barclays of making an $11 billion windfall when it bought the company in 2008. Peck said he found no willful misconduct.
Lehman’s former CEO Bryan Marsal also has brought suits against a slew of other banks, including Bank of America Corp. and JPMorgan Chase & Co., seeking to recoup billions in an effort to slake the thirst of angry creditors.
Additionally, on Sept. 14, Peck rejected Lehman’s claim that Barclays owed about $500 million in unpaid bonuses. The investment bank will not appeal this decision either.
For more, read Bloomberg.