Lehman Brothers to Pay $2.38 Billion in Connection with RMBS Claims

 

On March 8, 2018, Judge Shelley C. Chapman of the United States Bankruptcy Court for the Southern District of New York issued a decision from the bench valuing RMBS breach of representation and warranty claims against now-defunct Lehman Brothers Holdings Inc. at approximately $2.38 billion. While the Trustees of the Lehman-issued RMBS at issue sought an $11.4 billion valuation, the Court concluded that such a figure was not a fair or reasonable estimate of the claims, particularly in light of the fact that over a dozen institutional investors agreed to the lower figure earlier in the proceedings. The Court also highlighted that the Trustees could not point to any comparable settlement to support their valuation.