Tycoon Pickens sues Lehman over collateral
NEW YORK (Reuters) - Texas billionaire and energy tycoon T. Boone Pickens has sued Lehman Brothers Holdings Inc (LEHMQ.PK) for $59.9 million, claiming the bankrupt investment bank breached its contract by failing to repay collateral posted by Pickens.
Lehman Brothers Commodity Services Inc. failed to return $18,157 to Pickens and approximately $42 million posted by four of his BP Capital LLC funds after their deals were terminated by Lehman's bankruptcy filing, according to the lawsuit, filed on Monday in New York State Supreme Court.
"The notices of termination specified Lehman Holdings' bankruptcy filing as the relevant event of default," the lawsuit said.
Lehman has "failed to pay the amounts due," the lawsuit added.
A Lehman spokeswoman declined to comment.
Lehman Brothers Holdings Inc filed for bankruptcy protection on September 15, becoming the largest U.S. bankruptcy in history and the highest-profile casualty of the global credit crisis, after trying to finance too many risky assets with too little capital.
On September 26, Bank of America Corp sued three Lehman Brothers Holdings Inc units to recover nearly $500 million provided as collateral for derivative transactions.
(Reporting by Edith Honan; Editing by Bernard Orr)
