U.S. judge rejects Lehman workers’ claims on stock awards

Amen.

Justice League

Former senior employees of Lehman Brothers Holdings Inc [LEHLO.UL] who once commanded seven-figure pay packages failed to persuade a federal judge to restore hundreds of millions of dollars of stock awards that become worthless after the Wall Street bank’s collapse.

In a decision made public on Thursday, U.S. District Judge Richard Sullivan said the awards should be classified as equity, subject to being wiped out, rather than as contract claims entitling the workers to cash payouts from Lehman’s estate.

The decision covers an estimated $200 million or more of restricted stock units (RSUs) that Lehman awarded as an incentive to perform well over the long-term, before its Sept. 15, 2008 bankruptcy helped trigger that year’s global financial crisis.

Read on.

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One thought on “U.S. judge rejects Lehman workers’ claims on stock awards

  1. Ginny:

    The executives are already hoarding millions that this loss for them is mere pocket change.

    Gary

    Gary Victor Dubin Dubin Law Offices Harbor Court, Suite 3100 55 Merchant Street Honolulu, Hawaii 96813

    gdubin@dubinlaw.net (808) 537-2300 (office) (808) 392-9191 (cellular) (808) 523-7733 (facsimile)

    Licensed in California and Hawaii

    PLEASE NOTE THAT I VALUE YOUR CORRESPONDENCE BUT I CANNOT IMMEDIATELY ALWAYS REPLY TO EMAILS AS I MAY BE IN COURT OR TRAVELING.

    >

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