[ by Melanie Gretchen ]

Canadian Imperial Bank of Commerce (CIBC) agreed to pay the estate of Lehman Brothers Holdings Inc. millions to settle litigation arising over a CDO (collateralized debt obligation) tied to the bankruptcy of the former Wall Street bank.  

In a suit filed September 2010, Lehman Brothers claimed that the Canadian bank and others had deprived it of more than $3 billion that was withheld because the firm filed for Chapter 11 bankruptcy protection 2 years earlier.

CIBC, Canada's 5th largest bank, agreed on Monday to pay $149.5 million to end the dispute with Lehman which, once had been Wall Street's 4th largest investment bank.  Lehman emerged from bankruptcy protection on 3/6/12. 

To date, the Estate of Lehman Brothers has paid out about half of the estimated $65 billion it hopes to return to creditors.  This bankruptcy is the largest in U.S. history.

The case: Lehman Brothers Special Financing Inc. v. Bank of America NA et al, U.S. Bankruptcy Court, Southern District of New York, No. 10-ap-03547.  The main bankruptcy case: In re: Lehman Brothers Holdings Inc. in the same court, No. 08-13555.

For further details, go to [Reuters, 12/31/12].