Lehman Bankruptcy Trustee Agrees to Pay Barclays $1.3 Billion to Settle Suit

The Lehman Brothers Inc. BK trustee has agreed to pay nearly $1.3 billion to resolve long-running litigation with Barclays Capital Inc. over the sale of the failed investment bank’s brokerage business, according to court papers field today. The settlement  must still be approved by a bankruptcy judge but if accepted, would resolve all outstanding legal claims between Lehman and Barclays and put an end to over six years of litigation between the two parties. The proposed deal would be a major step in wrapping up the defunct investment banking firm’s bankruptcy and close a sad chapter in the market collapse of 2008 which resulted in Lehman’s bankruptcy filing on September 15, 2008.