Boies, Schiller & Flexner Report - July 2015
Lehman Agrees to Pay Additional $1.28 Billion to Barclays
Boies, Schiller & Flexner won a resounding victory for its client Barclays in a six-year battle over the bank’s purchase of the Lehman Brothers Inc. brokerage business at the height of the financial crisis. Lehman agreed on June 5, 2015, to pay Barclays an additional $1.28 billion to end the dispute, and Barclays said it would book a $750 million pre-tax gain as a result of the settlement. “Barclays fought hard and responsibly through six years of litigation to secure approximately $8 billion of purchased yet disputed assets, and today’s settlement brings that effort to a successful conclusion,” Managing Partner Jonathan Schiller told the Wall Street Journal. Lehman’s bankruptcy trustee had claimed that the brokerage business purchased by Barclays did not include more than $4 billion in margin assets and a further $1.9 billion in other so-called clearance box assets. The U.S. Court of Appeals for the Second Circuit issued two rulings last year, on August 5 and September 24, upholding lower court rulings in Barclays’ favor, and the U.S. Supreme Court in May declined to hear a petition by the trustee. The Firm’s work for Barclays was led by Mr. Schiller; along with partners Hamish Hume, Jonathan Shaw, Jack Stern, Tricia Bloomer, Todd Thomas, Bill Dzurilla, Chris Green, Heather King, and Amy Neuhardt; counsel Jon Davenport; and associates Camille Oberkampf and Randall Ewing.