Lehman Brothers trustee sues Citibank for 1.3B

AP News
Posted: Mar 19, 2011 3:24 PM
Lehman Brothers trustee sues Citibank for 1.3B

The trustee overseeing the bankruptcy of Lehman Brothers' brokerage unit is suing Citibank for more than $1.3 billion.

Trustee James Giddens said in a lawsuit filed Friday in Manhattan that he seeks to recover a $1 billion deposit for foreign exchange settlement services and more than $300 million in deposits that Citibank froze after the investment bank filed for bankruptcy protection in September 2008.

Calls to Citigroup Inc. for comment were not immediately returned.

Lehman Brothers Holdings Inc.'s bankruptcy was the largest in U.S. history when it filed for Chapter 11 and listed $613 billion in debts. In January, the investment bank offered a revised plan to exit bankruptcy to its creditors. They will vote on the proposal later this year.