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Lehman, Citi In $1.3B FX Settlement Suit

Lehman Brothers’ brokerage trustee, James Giddens, has filed a $1.3 billion foreign exchange settlement lawsuit against a unit of Citigroup.

Lehman Brothersbrokerage 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.”

Click here for the story from Bloomberg.

Click here for additional coverage from Reuters.

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