Lehman Brothers Holdings Inc.’s $699 million settlement with JPMorgan Chase & Co. was unopposed by creditors as it heads for a court hearing tomorrow, according to a court filing.
Under the agreement today, JPMorgan will pay bankrupt Lehman the money, which the bank’s investment fund affiliates had claimed as compensation for losses on Lehman investments. Lehman and its creditors had said the claims weren’t “plausible.”
The judge usually approves such uncontested agreements put before him. The $699 million was part of an $8.6 billion fight between Lehman and JPMorgan. Lehman has been trying to recover the funds, consisting of collateral deposited with the bank about the time of Lehman’s 2008 bankruptcy.
The lawsuit is Lehman Brothers Holdings Inc. v. JPMorgan Chase Bank NA, 10-03266, U.S. Bankruptcy Court, Southern District of New York (Manhattan).