Ex-Lehman Workers Lose Another Bid For $270 Million in Benefits

The latest effort by 344 former Lehman Brothers employees to receive about $270 million in deferred compensation in connection with the company’s bankruptcy estate fell flat when a federal judge in Manhattan rebuffed their efforts as “costly and protracted Dickensian litigation.”

The employees’ plan committee advanced an untenable legal theory that’s “directly contrary” to their prior position seeking benefits in the wake of Lehman’s 2008 bankruptcy, Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York said Monday.

Chapman’s ruling dismisses the committee’s 2019 adversary proceeding, which argued that the money employees were entitled ...