%1

Lehman Brothers Holdings Inc. has sued Credit Suisse Group AG, seeking to reduce "inflated" bankruptcy claims by roughly $1.1 billion, and also recover about $150 million from the Swiss bank, Reuters reported yesterday. Lehman accused Credit Suisse of exaggerating claims related to the early end of tens of thousands of derivatives transactions. Lehman calculated that the $1.19 billion in Credit Suisse claims at issue may be worth just $74.6 million. Lehman also estimated that Credit Suisse owes it roughly $150 million on some international transactions.

Bankrupt LightSquared on Friday sued leaders in the GPS industry, including Deere & Co. and Garmin International Inc., saying that they kept silent about interference concerns stemming from LightSquared's wireless network until the company had already pumped $4 billion into building it, Reuters reported on Friday. In a lawsuit filed in bankruptcy court, where LightSquared is fighting to keep control of its spectrum, the company alleged that farm equipment maker Deere, and GPS companies Garmin and Trimble Navigation Ltd. led it to believe its network would not interfere with global positioning system devices. The complaint comes on the heels of a similar lawsuit against the GPS industry by Phil Falcone's Harbinger Capital, LightSquared's controlling shareholder. Last month, LightSquared received permission from the bankruptcy judge overseeing its chapter 11 case to pause the Harbinger lawsuit so that LightSquared could decide whether it wanted to join the suit or bring claims of its own.

Chinese solar panel maker Suntech Power Holdings Co Ltd. said it intended to contest a bankruptcy petition filed against it in the U.S. by some bondholders, Reuters reported yesterday. A group of four U.S. bondholders, holding about $1.6 million of the debt-laden company's 3 percent convertible senior notes due 2013, made the filing under chapter 7 of the U.S. Bankruptcy Code. Suntech defaulted in March on a principal payment on its $541 million convertible bonds, prompting its main manufacturing unit, Wuxi Suntech, to file for bankruptcy protection in China five days later. Analysts have long warned that Suntech's overseas bondholders had slim chances of recovering their money, though the company has continued to enjoy government support while under bankruptcy proceedings in China.

MF Global Holdings Ltd. is going after $20 million in dividends it paid to private equity firm J.C. Flowers & Co. and other shareholders in the year leading up to its bankruptcy, Dow Jones Daily Bankruptcy Review reported yesterday. In a lawsuit filed in court on Wednesday, MF Global said that it paid $16.1 million in dividends to J.C. Flowers and $3.9 million to another group of preferred stockholders from November 2010 all the way up to August 2011, less than three months before the firm collapsed into bankruptcy. MF Global says that money belongs to its estate, thanks to a provision of the Bankruptcy Code that allows a company to claw back money it paid out in the year before its bankruptcy filing if its financial condition was perilous.

Charlie Ergen's Dish Network Corp won dismissal yesterday of a lawsuit brought by Phil Falcone's Harbinger Capital Partners in a fight over LightSquared Inc, a wireless communications business that is in bankruptcy, Reuters reported yesterday. Harbinger had sought $4 billion from Dish in the lawsuit, alleging that Dish had tried to strip Falcone of ownership of LightSquared. The legal team for Ergen had called the lawsuit a transparent bid by Falcone to hold onto LightSquared after driving it into bankruptcy. Bankruptcy Judge Shelley Chapman ruled from the bench after a hearing yesterday and dismissed the claims against Dish, attorneys on both sides said afterward.

PricewaterhouseCoopers LLP is asking a federal judge to trim back the Federal Deposit Insurance Corp.'s $1 billion lawsuit that alleges the accounting firm failed to catch the massive fraud that brought down Colonial Bank, Dow Jones Daily Bankruptcy Review reported today. The auditor and fellow accounting firm Crowe Horwath LLP say that they're not accountable for the multibillion-dollar mortgage finance fraud involving the multiple sales of the same bad loans.

The remnants of Lehman Brothers Holdings Inc. is suing the New York Giants for more than $100 million it says it's owed for a soured interest-rate swap tied to the financing of the football team's stadium, Dow Jones Daily Bankruptcy Review reported today. Giants Stadium LLC was set up by the team's owners, the Mara and Tisch families, to fund the construction of the team's new home field, now called MetLife Stadium.
To finance the stadium, the Giants unit issued $650 million in bonds, the bulk of which were underwritten by Lehman.

An insurer of some of Residential Capital LLC's residential mortgage-backed securities says ResCap's reorganization plan could stop it from going after the trustees that oversee the securities trusts, Dow Jones Newswires reported yesterday. Syncora Guarantee Inc. said in a court filing on Monday that it should have a legal right to go after the RMBS trustees' claims but won't because of wording in the reorganization plan. "The provisions of the plan that propose to impair or eliminate such rights should not be approved, and as a condition of confirmation the plan should be modified to delete exculpation of the trustees of the Syncora trusts," Syncora said in the filing. Without the "exculpation," Syncora argues, it would be free to go after the claims on behalf of the RMBS trusts. As part of ResCap's larger reorganization plan, the company allowed a $7.3 billion claim for the trusts representing more than one million original mortgages. Syncora, which insures $2.5 billion worth of the RMBS, said that wording in the reorganization plan suggests that insurers — including itself — will be shut out of collecting money from the trusts, even if the trusts get payments from ResCap.

Hedge funds that invested in an obscure bond of General Motors Corp.’s old businesses won approval of a settlement that will give some of them 1.8 times the return of other creditors and resolve disputes over how they acted on the eve of the automaker’s collapse, Bloomberg News reported yesterday. Bankruptcy Judge Robert Gerber yesterday approved a settlement that gives the holders of notes in GM’s Nova Scotia unit a $1.55 billion claim in the bankruptcy. Some, including Fortress Investment Group LLC and Elliott Management Corp., have already received a share of a $367 million cash payment made to holders of the notes, which have a face amount of $1 billion.

Ernst & Young has agreed to pay $99 million to former Lehman Brothers investors who have accused the auditor of helping Lehman misstate its financial records before the investment bank's collapse triggered a financial crisis in 2008, Reuters reported on Friday. The agreement, which must still get court approval, signals the end of a massive class action against Lehman's former directors, as well as several other financial institutions, according to a letter filed Wednesday in federal court in Manhattan. Lehman is accused of using the infamous "Repo 105" accounting practice to misleadingly understate its leverage to make itself appear more financially solvent. The investors who brought the lawsuit asked the court to suspend the case while the sides draft a settlement agreement.