NEW YORK, March 9 (Reuters) – A New York choose rejected a bid by the previous Lehman Brothers’ bankrupt European unit to claw again $485 million from bond insurer Assured Warranty Ltd (AGO.N) over transactions that have been canceled amid the worldwide monetary disaster.
In a call on Wednesday, Justice Melissa Crane of a New York state courtroom in Manhattan mentioned Assured’s AG Monetary Merchandise unit as a substitute deserved to get well about $20 million from Lehman Brothers Worldwide (Europe).
The case stemmed from Assured’s July 2009 termination of 28 credit score default swaps on which Lehman had purchased credit score safety.
Lehman and Assured disagreed on calculate the “loss” from the terminations.
Crane mentioned Lehman’s calculation, primarily based on hypothetical market costs estimated by its consultants, was not affordable as a result of the monetary disaster has “so disrupted” markets that correct costs didn’t exist.
Newest Updates
View 2 extra tales
“By placing all its eggs available in the market worth basket, LBIE has failed to point out each that Assured’s valuation was unreasonable, and that its personal valuation was affordable,” the choose wrote. “In the meantime, Assured’s valuation was affordable and calculated in good religion.”
Crane dominated after a five-week nonjury trial held in late 2021.
Lehman had sought $1.4 billion when it sued Bermuda-based Assured in November 2011. Some claims have been dismissed earlier than trial.
Legal professionals for Lehman didn’t instantly reply to requests for touch upon Thursday. Assured’s legal professionals in a press release referred to as the choice a “vital victory.”
The Sept. 15, 2008 chapter of Lehman Brothers Holdings Inc – as soon as Wall Road’s fourth-largest funding financial institution – was one of many main triggers of that 12 months’s monetary disaster. Lehman’s chapter stays by far the most important in U.S. historical past.
The case is Lehman Brothers Worldwide (Europe) v. AG Monetary Merchandise Inc, New York State Supreme Courtroom, New York County, No. 653284/2011.
Reporting by Jonathan Stempel in New York; Modifying by Hugh Lawson
: .
