A Look at the Lehman Brothers Case

An alumnus of the American University, Washington College of Law, Norman Kinel has pursued a distinguished career in bankruptcy law spanning more than three decades. Over the years, Norman Kinel has worked on many major bankruptcy cases, including the Lehman Brothers case, where he represented individual clients and was also later selected to serve as a court-approved mediator.

The largest bankruptcy case in American history, the 2008 collapse of Lehman Brothers sent shockwaves through the financial markets and helped to precipitate a global financial crisis that devastated world economies and led to substantial regulatory and market reforms. This collapse was due in part to Lehman Brothers’ rapid acquisition of mortgage lenders in previous years and a reliance on subprime mortgage securities, which left the financial giant exposed to the housing collapse that began in earnest in 2007.

Now, 10 years after Lehman Brothers filed for bankruptcy, the trustee in charge of the proceedings has stated that the case is winding down. According to a court filing by James Giddens, only a few hundred of the more than 140,000 initial claims against Lehman Brothers remain open. According to the filing, secured creditors were repaid in full, while unsecured creditors received nearly 40 cents on the dollar for their claims.