Saturday, 1 August 2015
Last updated 15 hours ago
Oct 7 2008 | 11:37pm ET
Legendary Texas oilman T. Boone Pickens and four of his hedge funds have sued a Lehman Brothers division for breach of contract.
Pickens and his BP Capital filed suit in New York State Supreme Court in Manhattan, alleging that Lehman Brothers Commodity Services broke a default agreement by failing to return collateral. Pickens and the hedge funds are seeking $59.9 million.
According to the complaint, Pickens—whose funds have lost about $1 billion this year while he leads a campaign for increased alternative energy use in the U.S.—and his firm sent termination letters to LBCS on Sept. 23, a week after Lehman filed for bankruptcy but before the commodity division filed itself. The suit is the second such action taken against LBCS, following a $500 million suit filed by Bank of America last month.
“The notices of termination specified Lehman Holdings’ bankruptcy filing as the relevant event of default,” the complaint alleges. “Defendant has failed to pay the amounts due.”
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…