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J.P. Morgan to pay nearly $800 million to settle all remaining Lehman Brothers lawsuits

J.P. Morgan Asset Management

J.P. Morgan Chase will pay $798 million to settle all remaining lawsuits and claims brought by Lehman Brothers Holdings.

The settlement includes claims against J.P. Morgan Chase for how it handled securities collateral as Lehman's clearing bank and custodian for tri-party repurchase agreements, or repos, and Lehman's objections to J.P. Morgan's securities lending claims, according to an 8-K filing with the Securities and Exchange Commission on Wednesday.

The settlement, if approved by U.S. Bankruptcy Court in New York, would settle all remaining claims against J.P. Morgan by Lehman Brothers. “We are pleased to have resolved Lehman's remaining claims and to put the matter behind us. The firm has legal reserves for this settlement,” according to a statement from Brian Marchiony, J.P. Morgan spokesman.

The settlement comes one year after J.P. Morgan agreed to pay Lehman Brothers $1.42 billion to settle most of a 2010 lawsuit that claimed J.P. Morgan took collateral prior to Lehman's bankruptcy, according to an 8-K filing by J.P. Morgan in January 2016.

A hearing on the latest motion to settle is scheduled in U.S. Bankruptcy Court on Feb. 16, according to the Wednesday filing.

Lehman Brothers filed for Chapter 11 bankruptcy protection on Sept. 15, 2008. Five days later, the bankruptcy court approved the $1.75 billion sale of the company's capital markets and investment banking operations to Barclays Capital.