Bank

Lehman sued by Deutsche Bank over mistaken fund transfer

Lehman Brothers Holdings Inc. was sued by Deutsche Bank AG, which said it mistakenly transferred $72.5 million to a Lehman account at Bank of America Corp. and that it wanted the money returned.

Lehman “was never the intended recipient of the sum transferred and never had any interest in the contract between Deutsche Bank and its counterparty,” the German bank said in a complaint filed yesterday in U.S. Bankruptcy Court in New York. Deutsche Bank accuses Lehman of unjust enrichment and wants the court to order Lehman to return the money.

On Sept. 26, after Lehman's bankruptcy filing, a fund that wasn't identified in the complaint asked Deutsche Bank to transfer the money that was payable under an agreement, according to the complaint. Because of incorrect wire instructions, the money ended up in a Lehman account at Bank of America rather than at the account of the prime broker, according to Deutsche Bank.

Lehman, based in New York, on Sept. 15 filed the biggest bankruptcy in history, listing $613 billion in debt.

Jonathan Doorley, a Lehman spokesman, declined to comment on the complaint.

(Published by Bloomberg - November 12, 2008)