Lehman Subpoenas Citadel, SAC Over Bankruptcy

Apr 20 2010 | 12:05pm ET

What’s left of Lehman Brothers has subpoened a quartet of prominent hedge funds as part of its investigation of outside firms that may have greased the wheels towards its demise.

The bankrupt investment bank filed the subpoenas on Friday in federal bankruptcy court in Manhattan, seeking information from Citadel Investment Group, Greenlight Capital, Och-Ziff Capital Management and SAC Capital Advisors. Lehman last year hired litigation firm Kasowitz Benson Torres & Friedman to look into “possible prosecution of certain litigation” against firms that it thinks may have hurt it as it collapsed in 2008.

The hedge funds subpoenaed are believed the have been shorting Lehman shares during the financial crisis.

Lehman also subpoenaed Goldman Sachs on Friday.

Lehman is conducting its own investigation—separate from that of examiner Anton Valukas released last month—into its collapse. The firm won the right to issue subpoenas in November.

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…