Fight over Lehman Brothers’ mortgage claims finally over
By Kevin Dugan
March 8, 2018 | 10:11pm
After 10 years, the fight over Lehman Brothers’ mortgage claims is over.
In a final dispute over the defunct bank’s residential mortgage-backed securities, a Manhattan bankruptcy court judge dealt a group of mostly hedge funds a whopping defeat.
Judge Shelley Chapman ruled Thursday, after a 22-day trial, that the hedge funds were entitled to about $2.4 billion from Dick Fuld’s bank — far less than the $11.4 billion they sought at trial and the $37 billion they had first claimed they were due, according to Bloomberg News.
Trustees for the RMBS holders failed to meet a “burden of proof” to show Lehman breaches on the 72,000 mortgages, Chapman ruled.
Among the funds suing Lehman are BlueMountain Capital, a major credit investor, which is run by Chief Investment Officer Andrew Feldstein.