Lehman Bros. Bankruptcy Still on the Hook for Part of Bonus

Former Lehman Brothers and Barclays star trader Jonathan Hoffman will be able to assert a claim against Lehman’s bankruptcy estate for $7.7 million of unpaid bonuses, the Second Circuit Court of Appeals ruled July 27. But the court otherwise left intact the district court’s finding that $83 million of bonus had already been paid by Barclays, and Hoffman wouldn’t be allowed to seek that compensation in Lehman’s bankruptcy case (1EE LLC v. Giddens ( In re Lehman Bros. Holdings Inc.), 2017 BL 260154, 2d Cir., 16-2737, 7/27/17).

The summary, non-precedential order by the court also found that former ...