Summary
JPMorgan Chase & Co. (JPM) announced on January 31, 2017, a settlement with Lehman Brothers Holdings Inc. and its affiliates to resolve all remaining disputes not covered by a previous settlement in January 2016. This new agreement addresses several key outstanding issues, including claims related to the disposition of securities collateral, specific payments owed, and objections concerning securities lending activities. The settlement requires JPM to pay Lehman $797.5 million. Importantly, the company had already reserved for this settlement amount, indicating it was anticipated and provided for in prior financial statements. The settlement is contingent upon approval from the Bankruptcy Court, with a hearing scheduled for February 16, 2017. This resolution brings finality to a significant chapter of litigation stemming from Lehman's bankruptcy.
Key Highlights
- 1JPMorgan Chase & Co. entered into a settlement agreement with Lehman Brothers Holdings Inc. and its affiliates on January 31, 2017.
- 2The settlement resolves all remaining lawsuits, claims, objections, and disputes between JPM and Lehman not covered by a prior January 2016 settlement.
- 3Key issues resolved include claims regarding the disposition of securities collateral, Lehman's objections to JPM's securities lending claims, and other related disputes.
- 4JPMorgan will pay Lehman a total of $797.5 million to settle these outstanding matters.
- 5The company had previously reserved for this settlement amount, meaning the financial impact was accounted for in prior periods.
- 6The settlement is subject to approval by the Bankruptcy Court, with a hearing scheduled for February 16, 2017.