Lehman Brothers’brokerage trustee, James Giddens, has filed a $1.3 billion foreign exchange settlement lawsuit against a unit of Citigroup, Bloomberg reports. The assets include a $1 billion deposit that Citibank demanded to continue providing FX settlement services to broker-dealer, Lehman Brothers, after its parent filed for Chapter 11 bankruptcy protection.
The trustee is also seeking to recover $300 million of deposits that Citibank froze at the time. In February 2011, Citigroup announced that it could face up to $3 billion in claims from Lehman’s bankruptcy proceedings. The bank called the trustee’s claims as “unjustified and without merit.”
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