• Judge Approves Use Of Insurance Policy Proceeds To Fund Partial Settlement Of Lehman Securities Class Action
  • May 9, 2012 | Author: Catherine L. Casavant
  • Law Firm: D'Amato & Lynch, LLP - New York Office
  • The former directors and officers of Lehman recently negotiated a partial settlement of the securities class action for $90 million which will be funded using insurance policy proceeds. Lehman's D&O insurers made a motion in the U.S. Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") seeking a modification of the automatic stay in Section 362(a) of the Bankruptcy Code to permit the insurers to release the insurance policy proceeds to pay the partial settlement.