JPMorgan Chase agreed to pay $797.5 million in cash to end all litigation brought on behalf the former Lehman Brothers Holdings, whose September 2008 collapse triggered a global financial crisis. The settlement follows JPMorgan's agreement last January to pay $1.42 billion in cash to resolve most other claims, in what had been an $8.6 billion lawsuit against JPMorgan to recoup money for Lehman creditors.

JPMorgan, which had been Lehman's largest secured creditor, was accused of exploiting its leverage as Lehman's main "clearing" bank to siphon critical liquidity in the last few days before Lehman went bankrupt on 9/15/08. Lehman creditors have maintained that JPMorgan unnecessarily extracted billions in collateral, and by doing so obtained a windfall at their expense.

In a court filing, lawyers for Lehman said the settlement avoids the uncertainty of continued litigation and millions of dollars of additional legal fees, and is "in the best interests of the Lehman estate and its creditors."

Lehman emerged from bankruptcy in March 2012, and has since been winding down. Creditors have recouped more than $110 billion, and bondholders, once projected to receive just 21 cents on the dollar, have recovered close to twice that sum.