Lehman Holdings defends actions brought by Barclays for alleged failure to pay placement fees

Client(s) Lehman Holdings Inc.

Jones Day represented Lehman Brothers Holdings Inc. and certain Real Estate Funds, which were all at one time owned by Lehman (collectively, "Lehman") in two actions brought by Barclays alleging that Lehman failed to pay more than $30 million dollars in placement fees to the "Private Investment Management" group, a former division of Lehman that was purchased by Barclays. Over Barclays' objections, Lehman successfully removed the actions from New York supreme court to the Southern District of New York (SDNY) and then petitioned the District Court judges to refer the cases to the SDNY Bankruptcy Court, asserting that these cases were related to the Bankruptcy and the Asset Purchase Agreement governing the sale of various Lehman assets to Barclays, and thus should be adjudicated in the Bankruptcy Court by the very Judge who approved the sale. The District Court Judges agreed with Lehman and referred these cases to the Bankruptcy Court. Barclays then voluntarily dismissed both suits.