Lehman Brothers Holdings Inc. is asking a bankruptcy court to authorize the payment of $10 million in insurance proceeds to its former chairman and chief executive, Richard S. Fuld Jr., so he can settle a pair of lawsuits.
The payment is part of a deal Fuld struck to "settle all disputes outstanding" in two lawsuits brought by Booth Foundation Inc. against the ex-Lehman CEO. Lehman and its affiliates aren't named as defendants in the lawsuits. "The actions allege unsuitability and failure to supervise claims arising out of alleged activities of certain Lehman brokers in connection with the sale to the Booth Foundation of [Lehman]-issued notes," Lehman said in court papers Wednesday.
