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�鶹���, together with Linklaters, represented the joint administrators of Lehman Brothers International (Europe) (“LBIE”) in connection with the litigation and settlement of $38 billion in claims between LBIE and Lehman Brothers Inc (“LBI”). The Lehman Brothers SIPA case is by far the largest SIPA proceeding on record involving an insolvent broker-dealer. The execution last week by LBIE and LBI of the definitive documentation of the settlement and the filing in the bankruptcy court today of the motion seeking approval of the settlement agreement represents a critical milestone in the Lehman Brothers administration and, subject to court approval, will unlock substantial distributions for creditors who hold tens of billions of dollars in claims.

LBIE, the Lehman Brothers U.K. broker-dealer in administration, filed approximately $30 billion in claims against LBI, the Lehman Brothers U.S. broker-dealer, in a liquidation under the Securities Investor Protection Act (SIPA) administered by SIPA Trustee James W. Giddens. LBIE’s claims were in both LBIE’s capacity as representative to its clients (Omnibus Claim) and for LBIE’s proprietary account (House Claim). Upon receipt of requisite court approvals and satisfaction of other conditions, LBIE’s Omnibus Claim will be allowed as a SIPA customer claim in an amount of approximately $7.5 billion (valued as of September 19, 2008) in cash and securities and augmented by approximately $600 million in post-filing income. LBIE’s House Claim will be allowed as a SIPA customer claim of $500 million and a general estate claim of $4 billion. LBI’s unsecured claim against LBIE of $13.8 billion will be eliminated, and LBI’s U.K. client money claim against LBIE will be assigned to LBIE’s nominee. LBI also agrees under certain conditions to indemnify LBIE for up to $777 million in related contingent claims against LBIE. The deal allows for continued planning of distributions in their respective estates. The deal is scheduled for a hearing for court approval in April of 2013.

The �鶹��� team is led by bankruptcy partner Timothy Graulich, litigation partner Elliot Moskowitz, credit counsel Erika D. White, bankruptcy counsel James M. Millerman and litigation counsel Michael J. Russano. All members of the �鶹��� team are based in the New York office.