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Courts Continue to Rule for BSF Client Barclays in Lehman Bankruptcy Deal

In The News


Judge James Peck of the US Bankruptcy Court for the Southern District of New York ruled in favor of BSF client Barclays PLC on February 22, 2011 following the Firm's vigorous defense at trial in 2010 against claims brought by Lehman Brothers Holdings Inc. (LBHI). The Court ruled that Barclays' purchase of Lehman's broker dealer unit in September 2008 was done in good faith, and denied the bankrupt bank's request to recover an alleged $11 billion "windfall."

In a 103-page opinion, the Court recognized that Barclays' purchase of Lehman "was regarded by many as an admirable, even heroic, achievement that helped to salvage jobs." And it held that "whatever the Court did not know at the time about the specifics of the sale does not appear to have been withheld deliberately."  The Court ruled that the Sale Order stands, and the Lehman estates and creditors may not revise the terms of the transactions after the fact.  The estate of LBHI and its Creditors Committee initially appealed these rulings, but then dropped their appeal.

Portions of the ruling that were in favor of the Lehman Trustee were successfully appealed by BSF on behalf of Barclays in June 2012. In particular, the District Court for the Southern District of New York granted BSF’s appeal of the Bankruptcy Court’s ruling denying Barclays approximately $4 billion in so-called “Margin Assets.” 

The Lehman Trustee had filed an appeal on a separate issue --  the Bankruptcy Court’s ruling entitling Barclays to approximately $1,9 billion in so-called “Clearance Box Assets” -- but the District Court denied that appeal.

Please follow the below links for media coverage of this case.

American Lawyer [subscription], June 7, 2012
Boies Schiller Extends Multibillion-Dollar Win in Lehman-Barclays Fight

The Wall Street Journal, June 6, 2012
Judge Rules for Barclays in Lehman Dispute

Financial Times, June 6, 2012
Barclays victory in Lehman assets dispute

Law360 [subscription], June 6, 2012
Barclays Wins Big In Trustee Row Over Lehman Assets

The Independent, June 6, 2012
Barclays can keep billions related to Lehman buyout, US judge rules

Reuters, June 6, 2012
Barclays may recover Lehman-linked assets – ruling

Bloomberg, June 6, 2012
Lehman Brokerage Loses Appeal of Barclays Asset Ruling

Bloomberg, September 21, 2011
Lehman Drops Litigation to Collect $11 Billion From Barclays

Reuters, September 21, 2011
Lehman to drop appeals over Barclays sale

American Lawyer [subscription], September 21, 2011
Lehman Estate Throws in the Towel, Drops Appeal in $13 Billion 'Windfall' Case Against Barclays

Wall Street Journal, September 21, 2011
Lehman Drops Appeal of 'Secret Discount' Lawsuit

Financial Times, September 21, 2011
Lehman estate drops $11bn Barclays suit

Law360 [subscription], September 21, 2011
Lehman Drops Appeal In $13B Barclays Suit

The Wall Street Journal, September 15, 2011
Judge Sides With Barclays In Lehman Bonus Spat

American Lawyer [subscription], September 15, 2011
Boies Schiller Knocks Out Lehman Estate's Final $500 Million Claim Against Barclays; Judge Finds 'No Harm, No Foul' in Barclays Bonus Payments

Reuters, September 14, 2011
Lehman loses bid to recoup $500 million from Barclays

Law360 [subscription], September 14, 2011
Barclays Doesn't Owe Ex-Lehman Workers $500M: Judge

Bloomberg, September 14, 2011
Barclays Wins Ruling Against Lehman Brothers

Law360 [subscription], September 7, 2011
Lehman, Barclays Spar Over $2B Compensation Contract

The Wall Street Journal, September 7, 2011
Lehman, Barclays Spar Over Bonuses

Bloomberg, September 7, 2011
Lehman Bonuses Were Estimate in Barclays Sale, U.S. Bankruptcy Judge Says

Reuters, September 7, 2011
Lehman asks U.S. judge for $500 million Barclays payback

Law360 [subscription], August 2, 2011
Barclays Ups Lehman Asset Appeal To $2.8B

Reuters, July 15, 2011
Barclays appeals $4 billion owed to Lehman trustee

The Am Law Litigation Daily, February 25, 2011
Litigator of the Week: Jonathan Schiller of Boies, Schiller & Flexner

The Times [UK], February 24, 2011
Barclays' Lehman deal cleared

The Guardian [London], February 24, 2011
A tough bargain but legal: judge's view of Lehman takeover: No misconduct in Barclays buyout of US operations Claims of improper $11bn windfall rejected

The Wall Street Journal, February 23, 2011
Judge Sides With Barclays in Lehman Discount Suit

Bloomberg, February 23, 2011
Barclays Need Not Pay ‘Windfall’ to Lehman, U.S. Judge Says

The New York Times, February 23, 2011
Lehman Sale to Barclays Was Proper, Judge Rules

Financial Times, February 23, 2011
Barclays purchase of Lehman unit ruled fair

Reuters, February 22, 2011
Barclays beats Lehman in $11 bln "windfall" suit

Bloomberg, October 21, 2010
Lehman Tells Court Barclays Didn't Disclose Gains in Brokerage Acquisition

Dow Jones, October 21, 2010
Lehman, Barclays Wrap Up Arguments In Lawsuit Over 2008 Deal

Financial Times, October 21, 2010
Lehman battles for Barclays’ windfall

American Lawyer, October 21, 2010
'Corporate America's No. 1 Hired Gun' Spars with Judge as He Tries to Rebut Lehman's Billion-Dollar Windfall Claims in Barclays Closing Argument

Bloomberg, October 5, 2010
Lehman’s Do-Over Quest Runs Against Facts in Court

Bloomberg, October 5, 2010
Lehman Sale Blank Check May Haunt Judge at Barclays Trial

Dow Jones, September 10, 2010
Barclays, Lehman Argue Over 'Expert' Witnesses In Lawsuit,,DN-CO-20100910-010054,...

Dow Jones, September 8, 2010
Fed Lawyer: No 'Plan B' If Barclays's Lehman Buy Fell Through

Bloomberg, September 7, 2010
Fed Planned to Wind Down Lehman Brokerage After Bankruptcy, Lawyer Says

Dow Jones, September 2, 2010
$5 Bln Lehman Discount Would Have Required 'Collusion' –Witness

Dow Jones, August 31, 2010
Barclays Lawyer Says Lehman Letter Was Adequately Explained

Bloomberg, August 31, 2010
Barclays Asked Fed About Aid When It Bought Lehman Brokerage, Lawyer Says

Bloomberg, August 30, 2010
Lehman Derivatives Records a `Mess,' Barclays Executive Says

AmLaw Daily, August 28, 2010
Barclays' Cleary Lawyers, Others Take Stand in Lehman Suit

Bloomberg, August 27, 2010
Barclays Adviser on Lehman Deal Got $10 Million Fee

The Wall Street Journal, August 27, 2010
Former Citi Exec Got $10M to Advise Barclays on Lehman Deal

Bloomberg, August 25, 2010
Barclays Didn't Know What Backed $45 Billion Lehman Loan, Witness Says

Dow Jones, August 25, 2010
Valuing Lehman Assets Tough But Not Secretive - Ex-Barclays Executive

Wall Street Journal, August 24, 2010
Lawyer Says Lehman Didn't Object To Changes In Barclays Deal

Bloomberg, August 24, 2010
Lehman Derivatives Were Threatened With Liquidation in 2008, Lawyer Says

London Telegraph, August 24, 2010
Michael Klein returns to the fore in Lehman trial

Bloomberg, August 23, 2010
Lehman Made `Best Deal It Could' in Barclays Brokerage Sale

Reuters, August 23, 2010
Barclays exec defends deal as Lehman trial resumes

The Guardian, June 22, 2010
Barclays' Bob Diamond chided by judge in Lehman Brothers trial

City AM, June 22, 2010
Barclays boss rejects claim

London Telegraph, June 22, 2010
Bob Diamond tells judge why Barclays bought Lehman

Bloomberg, June 22, 2010
Barclays Bought Lehman Brokerage in `Riskiest Week of My Life,' CEO Says

Reuters, June 22, 2010
Lehman assets a "dog's breakfast": Barclays president

Reuters, June 21, 2010
Barclays president says media told of deal gain

London Guardian, June 21, 2010
Lehman trial claims Barclays deal took place in 'total chaos'

London Telegraph, June 21, 2010
Bob Diamond tells judge why Barclays bought Lehman

AmLaw Daily, June 21, 2010
Heavyweight Clash: Bob Diamond Vs. Jones Day's Bob Gaffey

Financial Times, June 21, 2010
Barclays chief says Lehman was a risk

Reuters, June 16, 2010
BarCap chief to testify at Lehman windfall trial

The Am Law Litigation Daily, May 7, 2010
Lehman Has a Rare Good Day in Barclays Windfall Trial

Bloomberg, April 30, 2010
Barclays Sought Out-of-Bounds Lehman Assets, Lawyer Says

Bloomberg, April 29, 2010
Lehman Ex-CFO Says Barclays Offered Him $4.5 Million

Am Law Litigation Daily, April 28, 2010
On the Witness Stand, Harvey Miller Defends Lehman Brokerage Sale to Barclays

Bloomberg, April 28, 2010
Lehman Brokerage Sale Was Good for U.S., Lawyer Says (Update1)

The Times - London, April 26, 2010
Lehman ‘did not expect to lose’ on Barclays deal

The Times - London, April 26, 2010
Barclays boss called to US court over Lehmans

Bloomberg, April 26, 2010
Lehman Director Doesn’t Recall Barclays Profit Talks

Sunday Express - London, April 25, 2010
Barclays in Legal Battle over Lehman Billions

Financial Times, April 25, 2010
Trial to start over Barclays’ Lehman deal

Wall Street Journal, February 2, 2010
Barclays Reveals Key Weapon In Lehman Battle

American Lawyer, February 1, 2010
Big Suits - In re Lehman Brothers Holdings

Bloomberg, January 29, 2010
Barclays Says Lehman Owes It $3 Billion on Brokerage Deal

New York Times, January 29, 2010
Barclays Seeks Dismissal of Lawsuit by Lehman Estate

Wall Street Journal, January 29, 2010
The Daily Docket: Lehman Revisited

Times Online, January 29, 2010
Barclays fights back against Lehman lawsuit

Reuters, January 29, 2010
Barclays fires back at Lehman windfall-profit suit

AmLaw Daily, January 29, 2010
Deep into the Lehman-Barclays Dispute

The Telegraph - UK, January 29, 2010
Barclays claims it is still owed $3bn over its purchase of Lehman's US business

Am Law Litigation Daily, January 29, 2010
Barclays Uses Harvey Miller Deposition to Refute Lehman Claims

Financial Times, January 29, 2010
Barclays Capital defends Lehman deal

Wall Street Journal, January 29, 2010
Barclays Fires Back At Lehman Windfall Claims

Reuters, January 29, 2010
Barclays urges dismissal of Lehman "windfall" suit

Law360, January 29, 2010
Lehman Buy Was Aboveboard: Barclays

Reuters, December 14, 2009
Barclays' Lehman assets performing well-Diamond

The Am Law Litigation Daily, December 10, 2009
Barclays to Lehman Creditors: Nothing Secret About the Lehman Brothers Sale

Reuters, December 10, 2009
Barclays says had no "secret" gains in Lehman deal

Bloomberg, December 9, 2009
Barclays Says Lehman Brokerage Sale Gave It No ‘Secret’ Gain

The AmLaw Daily, December 9, 2009
Barclays, Boies Schiller Blow Open Attorney-Client Privilege in Lehman Case

London Telegraph, December 9, 2009
Barclays' Lehman Bros profit no 'secret'

Law360, December 8, 2009
Lehman Creditors, Barclays Spar Over Atty Privilege

The Am Law Daily, October 16, 2009
Fees and More Fees: Lehman, Chrysler Updates

Reuters, October 15, 2009
Barclays owed $3 bln in assets from Lehman-lawyer

The Wall Street Journal, September 18, 2009
Hurdles for a Bulked-Up Barclays

Financial Times, September 16, 2009
Lehman creditors challenge '$8bn' transfer

The Wall Street Journal, September 16, 2009
Lehman Blasts Barclays 'Windfall'

Bloomberg, September 16, 2009
Lehman Says Barclays Got $5 Billion Discount, Wants Assets Back

The New York Times DealBook, September 15, 2009
Lehman Wants Judge to Revise Barclays Deal

The Independent (UK),
Why the courts should remember the first rule of business: a deal is a deal

Related Lawyers: David Boies, Jonathan D. Schiller, Hamish P. M. Hume, Jack G. Stern, Amy L. Neuhardt, Christopher M. Green, Tricia J. Bloomer, W. Todd Thomas, William T. Dzurilla, Jonathan W. Davenport, , , , , Heather King, , , , , Jonathan M. Shaw, Samuel C. Kaplan,

Related Practice: Litigation