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What’s left of the bankrupt Lehman Brothers is suing Saint Louis University for about $18 million. Lehman Brothers Holdings, the legal remnant of the investment bank that went bankrupt in 2008, alleges the university failed to uphold its side of a complicated financial deal known as an interest rate swap.
The university terminated the deal within months of Lehman’s bankruptcy. When it ended the deal, the university was supposed to calculate a value for what it owed Lehman. Under the method it used, it paid Lehman about $24 million. Lehman’s lawyers said the university came to that figure in an “unreasonable manner” and actually owed about $42 million. Now, Lehman wants $17.9 million more, plus interest.
In a statement, Saint Louis University said, “This is a complex financial matter that the university is confident will be resolved in its favor.”
