Barclays wins fight against Lehman Brothers

Posted 24/02/2011

Barclays has won the case brought against the firm by Lehman Brothers, which is down to hard work of its commercial law solicitors.

A judge has ruled that Barclays’ purchase of the US operations of Lehman Brothers in 2008 was fair after it launched the case against the financial services provider for $11 billion (£6.8 billion).

Lehman agreed to sell its investment banking and broking arm in the US to Barclays having already filed for bankruptcy and later said the UK financier had been given special treatment during this time.

Bankruptcy judge James Peck said the deal had been flawed but it was still fair, stating: “The sale process may have been imperfect, but it was still adequate under the exceptional circumstances of Lehman Week.”

During this week in September 2008, the investment firm became the highest profile company that failed during the credit crisis.

The repercussions of the group’s bankruptcy were significant and more than 4,500 employees in London lost their job as a result.