Second Circuit Rejects Lehman’s $1B Clawback Effort

The Second Circuit has ruled that Lehman Brothers cannot claw back $1 billion in financial crisis-era payments distributed after Lehman filed for bankruptcy more than a decade ago, finding that the payments, among other things, were protected by the safe harbor under Section 560 of the bankruptcy code.

McCarter partner David Adler successfully represented Security Benefit Life Insurance Company in this case.