Lehman, Citi In $1.3B FX Settlement Suit

Lehman Brothers’brokerage trustee,James Giddens, has filed a $1.3 billion foreign exchange settlement lawsuit against a unit ofCitigroup,Bloombergreports. The assets include a $1 billion deposit thatCitibankdemanded to continue providing FX settlement services to broker-dealer, Lehman Brothers, after its parent filed for Chapter 11 bankruptcy protection.

The trustee is also seeking to recover $300 million of deposits that Citibank froze at the time. In February 2011, Citigroup announced that it could face up to $3 billion in claims from Lehman’s bankruptcy proceedings. The bank called the trustee’s claims as “unjustified and without merit.”

Click here for the story fromBloomberg.

Click here for additional coverage fromReuters.