Defunct Lehman Still Seeking Millions from Nonprofits

Nearly five years after its bankruptcy filing triggered the global financial meltdown, Lehman Brothers is aggressively pursuing millions of dollars from nonprofit groups that quickly paid to end risky investment deals after the September 2008 crash, writes Bloomberg.

Managers of the defunct banking giant’s liquidation have sued or sought mediation to collect more from private colleges, retirement homes, and other organizations and pass it on to Lehman creditors. Lehman claims the groups shortchanged it when they canceled swaps in financial instruments known as derivatives.

In one such case, Lehman is seeking $12.1-million plus at least $4.7-million in interest from the Buck Institute for Research on Aging, a California organization that studies age-related illnesses such as Alzheimer’s and Parkinson’s. The institute paid Lehman $2-million in October 2008 to exit a derivatives deal.