Lehman Brothers Holdings Inc.'s bank subsidiary is suing the Massachusetts Department of Transportation (MassDOT) over soured swaps and options, claiming the state authority manipulated the market-quotation process after Lehman's bankruptcy to reap a windfall of more than $30 million, Dow Jones Daily Bankruptcy Review reported today. Woodlands Commercial Corp., once known as Lehman Brothers Commercial Bank, is suing the agency to recover the tens of millions it says it is owed on half dozen interest rate swaps and option transactions.
