Lehman Brothers eyes $1.5 million settlement with Bank of America

By Jennifer Lanning Drey

Savannah, Ga., April 4 - Lehman Brothers Holdings Inc. and Lehman Brothers Special Financing, Inc. requested court approval of a settlement with Bank of America NA that resolves a pending adversary proceeding, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement, Bank of America will make a $1.5 million settlement payment to Lehman Brothers.

In exchange, Lehman and its creditors committee will release all claims against Bank of America for damages, sanctions, costs or attorney fees related to a prior dispute over Bank of America's setoffs against Lehman's overdraft and other accounts previously held by Bank of America.

New York-based Lehman Brothers Holdings was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

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