U.S. District Judge Lewis Kaplan has refused for now to allow insurers for former officers and directors of Lehman Brothers Holdings Inc. to pay $90 million to settle a fraud lawsuit brought by investors, Reuters reported on Friday. Judge Kaplan on Thursday directed five former officers of the investment bank, including Chief Executive Richard Fuld, to file financial paperwork by May 10 to help him decide whether the settlement is fair. Judge Kaplan will review not only whether their combined liquid net worth is less than $100 million, as a mediator had found, but also whether they have other assets that could be tapped to help former Lehman investors recoup their losses on tens of billions of dollars of securities.
