Deutsche Bank sues Lehman for $US72.5m

Deutsche Bank AG has sued Lehman Brothers to recover $US72.5 million it says was accidentally transferred to the failed investment bank after it had filed for bankruptcy.

The lawsuit was filed late Tuesday in Lehman’s Chapter 11 case.

“DB asks this court to correct a simple but substantial mistake,” lawyers for Deutsche Bank wrote in their filing. They say Deutsche Bank meant to transfer the $US72.5 million to another party but sent it instead to Lehman Brothers Holdings Inc “due to both a clerical error at DB and a miscommunication between DB and its counter-party”.

Lehman was forced to rush into bankruptcy September 15 as investors lost confidence that it could go on, and after it had failed to secure a buyout or a bailout.

Lawyers for Frankfurt-based Deutsche Bank argued Lehman was never the intended recipient of the money. They said Lehman has refused to transfer the money because “one or more Lehman entities – not necessarily LBHI – is owed approximately $US290 million by DB”.

“After several discussions, LBHI has not agreed to return the sum that it mistakenly received,” they wrote. “LBHI should promptly repay.”

Lehman’s liquidation is the biggest bankruptcy filing in US history. It filed with assets of $US639 billion and debt of $US613 billion.

Since the filing, it has sold its North American investment banking unit and Midtown Manhattan headquarters to Barclays Capital. It also has agreed to sell its money management arm, Neuberger Berman, to two private equity firms and its Asian, European and Middle Eastern businesses to Japan’s largest brokerage, Nomura Holdings Inc.

AP

Technorati Tags: Deutsche Bank AG, Lehman Brothers

No related posts.