The Trustee will be issuing Forms 1099-INT, 1099-DIV, 1099-B, and 1042-S for 2013, to the extent he is required by law to do so, to certain former account holders for whom there was reportable activity in 2013.
The Trustee has engaged an outside service provider to prepare these Forms and to prepare Forms 1099-MISC for vendors and independent contractors for tax year 2013. Under IRS rules, the due date for mailing Forms 1099-INT, 1099-DIV, 1042-S, and 1099-MISC is January 31, 2014; the due date for mailing Forms 1099-B is February 18, 2014. In order to ensure accurate preparation of these forms, the Trustee has applied for a 30-day extension of these deadlines from the IRS.
If you have any questions, you may contact the Trustee’s hotline at 1-866-841-7868, or send an email to email@example.com. Please include a contact phone number where you can be reached. Please note that the Trustee’s staff cannot provide tax advice.
For answers to frequently asked questions about tax forms, please click here.
This is the website for information pertaining to the U.S. Securities Investor Protection Act of 1970 (SIPA) liquidation of Lehman Brothers Inc. (LBI), the U.S. broker-dealer of Lehman Brothers. James W. Giddens was appointed Trustee for the liquidation, and Hughes Hubbard & Reed LLP was appointed as counsel to the Trustee.
On September 19, 2008, the Court entered an order granting the application of the Securities Investor Protection Corporation (SIPC) for issuance of a Protective Decree adjudicating that the customers of LBI are in need of protection afforded by the U.S. Securities Investor Protection Act of 1970 (SIPA). The liquidation has been referred to, and is now being administered under, the auspices of The Honorable Shelley C. Chapman, United States Bankruptcy Court for the Southern District of New York (Case No. 08-01420 (SCC) (SIPA). The liquidation of LBI is overseen by James W. Giddens, as the Trustee appointed by the United States District Court for the Southern District of New York. The Trustee fulfills public duties assigned under SIPA. The Main Case Docket can be accessed through the website maintained by the United States Bankruptcy Court (http://www.nysb.uscourts.gov). An unofficial version of the Docket is accessible by selecting the “Docket” link at the top of this page.
For more information on the Trustee's reform efforts, please click here.
The information on this website does not apply to any other Lehman entity, including separate insolvency proceedings involving Lehman Brothers Holdings, Inc. (LBHI) and Lehman Brothers International (Europe) (LBIE). For inquiries regarding those proceedings, please visit http://www.lehman-docket.com or http://www.pwc.co.uk, respectively.
PLEASE DIRECT LEGAL INQUIRIES TO:
Hughes Hubbard & Reed LLP
One Battery Park Plaza
New York, New York 10004
Phone: (212) 837-6000
PLEASE DIRECT MEDIA INQUIRIES TO:
Phone: (202) 230-1833
Phone: (202) 569-5086
The liquidation of Lehman Brothers Inc. ("LBI") under the Securities Investor Act of 1970 ("SIPA") is the largest and most complex stock broker liquidation ever attempted, and one of the largest and most complex insolvency proceedings of any kind in history.
The Trustee for the liquidation of LBI fulfills a public duty assigned under SIPA. The Trustee's primary duty under the law is the return of customer property to customers of LBI as defined under SIPA, while at the same time maximizing the estate for all creditors.
Since his appointment on September 19, 2008 by the United States District Court for the Southern District of New York, the Trustee has administered more than $110 billion in the SIPA liquidation of LBI.
All of the Trustee's actions are in coordination with the advice of the Securities Investor Protection Corporation ("SIPC"). More information on SIPC is available at www.sipc.org. Please also refer to the SIPC Investor Guide and How SIPC Protects You.
The Trustee for the liquidation of LBI fulfills a public duty assigned to him under SIPA.
On September 19, 2008, the United States District Court for the Southern District of New York entered an Order Commencing Liquidation granting the application of the Securities Investor Protection Corporation ("SIPC") for issuance of a Protective Decree adjudicating that the customers of Lehman Brothers Inc. ("LBI") are in need of the protection afforded by SIPA. James W. Giddens was appointed trustee for the liquidation, Hughes Hubbard & Reed LLP was appointed as counsel to the Trustee, and the case was removed to the United States Bankruptcy Court for the Southern District of New York.
The Trustee has retained various experts and professionals to perform various functions and otherwise assist the Trustee in the orderly liquidation of the LBI estate and satisfaction of customer claims.
Generally, in a SIPA liquidation a trustee assumes the premises of a broker-dealer. However, due to the acquisition of such premises by Barclays Capital Inc., the Trustee established a fully operational and staffed New York City office to facilitate review of claims and respond to inquiries to customer and creditors.
The Trustee makes every effort to keep customers and other interested parties informed on all ongoing efforts to administer the LBI estate. For contact information please email firstname.lastname@example.org.
The activities of the Trustee for the SIPA liquidation of LBI are summarized in periodic Interim Reports to the Bankruptcy Court. Please refer to the Public Reports section of the website for more information.
Included among the Trustee's activities are the following matters:
Please click on any of the above to be directed to more information on those topics.
A SIPA trustee has a duty under the law to investigate the reasons of the broker's failure and, as is traditional, to identify problems that could be remedied in future liquidations. In the case of LBI, these efforts include lessons learned, considerations, and recommendations for the Court, legislators, and regulators.
In that connection, the Trustee made several recommendations for future broker-dealer liquidations in its Preliminary Investigation Report. In all phases of their efforts, the Trustee and his professionals work hand in hand with the Securities Investor Protection Corporation, meet regularly with the United States Securities & Exchange Commission, the Financial Industry Regulatory Authority, the Commodities Futures Trading Commission, and liaise with the Federal Reserve Bank of New York and the British Financial Services Authority.
In addition to these ongoing efforts, the Trustee has also provided hundreds of thousands of pages of documents and information to several governmental entities involved in reform efforts, including the General Accounting Office, Financial Crisis Inquiry Commission, and the Congressional Oversight Panel.
Finally, the Trustee is also a member of the SIPC Modernization Task Force, which is tasked with proposing appropriate statutory amendments to SIPA in light of changes in the securities industry and judicial interpretations of SIPA.
In accordance with his duties under SIPA, the Trustee submits periodic Interim Reports to the Bankruptcy Court. Please click below to download these reports:
In accordance with his duties under SIPA, the Trustee must investigate the acts, conduct, property, and financial condition of LBI, including the causes of the broker-dealer's demise and lessons that may be learned from a regulatory perspective. Please click below to download the Trustee's Preliminary Investigation Report and Recommendations, which chronicles LBI's demise and includes practical lessons learned in the course of the liquidation and recommendations for the future. A final report, which among other things will comment on certain of the Trustee's litigations, will be issued at the conclusion of the liquidation.
The goal of the U.S. Securities Investor Protection Act of 1970 ("SIPA") is to transfer or return cash or property as promptly as possible to customers of a failed brokerage firm. SIPA lays out a process for returning assets that requires fairness for all claimants.
The Trustee for the SIPA liquidation of Lehman Brothers Inc. ("LBI") continues to work through an enormous workload to resolve claims in a fair, transparent and orderly process. This involves analyzing claims against the estate, fairly resolving claim issues and vigorously marshalling assets to maximize the amount available for distribution as customer property.
All former securities customers are being satisfied at 100% of their net equity. Distributions to date exceed $100 billion and are continuing. The process of analyzing, objecting to, settling, and otherwise resolving the more than 12,000 filed general creditor claims is advancing.
All former securities customers are being satisfied at 100% of their net equity. Distributions to date exceed $100 billion and are continuing.
In order to receive distributions, claimants must return a signed release to Epiq Bankruptcy Solutions at:
Release forms have been mailed to all claimants with allowed customer claims.
The distributions are made possible by settlements negotiated by the Trustee with LBHI and LBIE, which are now effective.
Note: THIS DEADLINE DID NOT RELATE TO ANY CUSTOMER OR GENERAL CREDITOR CLAIM THAT AROSE PRIOR TO SEPTEMBER 19, 2008 AND ANY SUCH CLAIM IS NOW TIME-BARRED. THIS DEADLINE HAS NO EFFECT ON PREVIOUSLY SUBMITTED CLAIMS AND CLAIMANTS THAT FILED CUSTOMER OR GENERAL CREDITOR CLAIMS THAT AROSE PRIOR TO SEPTEMBER 19, 2008 NEED NOT RESUBMIT THEIR CLAIMS.
The deadline has now passed for the submission of claims for administrative expenses against the Lehman Brothers Inc. (LBI) estate arising between September 19, 2008 and August 31, 2013.
Administrative claims are being reviewed as part of the general creditor reconciliation process. The Administrative Bar Date is a step that will help provide certainty on the amount of administrative expenses claimed against the LBI estate. This will support further progress in the administration of the general estate.
The goal of SIPA is to transfer or return cash or property as promptly as possible to customers of a failed brokerage firm. SIPA lays out a process for returning assets that requires fairness for all claimants.
As of the June 1, 2009 bar date, the Trustee had received more than 12,500 asserted customer claims on behalf of more than 86,000 accounts, along with nealy 9,000 general estate claims. The customer claims include those asserted by, among others, Lehman Brothers Holdings Inc. (LBHI), Lehman Brothers International (Europe) (LBIE), and Barclays Capital Inc. (Barclays) that were filed on an omnibus basis on behalf of many thousands of accounts.
On October 5, 2009 the Trustee filed a Motion for Order Approving the Trustee's Allocation of Property of the Estate pursuant to SIPA seeking Bankruptcy Court approval of an allocation of assets available to satisfy claims. On March 2, 2010, the court entered an Order approving the motion.
On December 1, 2011, the Trustee filed a second motion seeking an order approving the Trustee’s Allocation of Property of the Estate pursuant to SIPA. On April 30, 2012, the Trustee filed a Statement in Further Support of the Second Motion for Order Approving the Trustee’s Allocation of Property. The liquidation has reached a stage where the great bulk of the assets that will be available for distribution are under control of the estate. The second proposed allocation order sets forth the principles by which assets will be allocated to the customer and general estates. The Trustee has been working with interested parties to come to agreement on allocation. An order approving the allocation motion is a prerequisite to distributions from the LBI estate.
On January 31, 2013, the Trustee filed a supplement to the second motion seeking Court approval for the Trustee’s allocation of property. The filing of this supplement followed the Trustee reaching agreements in principle with LBIE and LBHI and supported the goal of an allocation of customer property sufficient to satisfy allowed customer claims in full. On April 16, 2013, the court entered an order approving the supplement motion.
The Trustee provided claimants with the option to file claims manually and electronically, a first in the history of SIPA liquidations. Pursuant to SIPA §78fff-2(a)(3), customer claims must have been received by January 30, 2009 to be eligible for maximum protection afforded under SIPA. No claim of any kind was allowed if not received by the Trustee on or before June 1, 2009.
A claim is determined when a letter of determination has been sent to the claimant. As described in the Trustee's Third Interim Report, the Trustee has now responded to virtually all asserted customer claims and has made substantial progress in reconciling complex and sizeable omnibus claims.
The process of analyzing, objecting to, settling, and otherwise resolving the more than 12,000 filed general creditor claims is advancing. On July 31, 2013, the Trustee filed with the Bankruptcy Court a Quarterly Report on the general creditor claims process.
Having now reached settlements with LBIE, LBHI, and Lehman Brothers Finance, SA (LBF) to resolve the claims among their respective entities, and having substantially completed the processing of customer claims filed against the LBI estate, the Trustee has good reason to believe there will be a meaningful distribution to LBI general creditors.
Accordingly, in keeping with SIPA and section 704(a)(5) of the Bankruptcy Code, the Trustee has initiated a comprehensive review and reconciliation of all general creditor claims filed in this proceeding to determine the validity and actual allowed amounts of such claims, and has begun the process of objecting to claims by filing omnibus objections to general creditor claims pursuant to section 502(b) of the Bankruptcy Code, as made applicable to this proceeding pursuant to SIPA sections 78fff(b) and 78fff-1(a), and Bankruptcy Rule 3007(d)(1).
In the interest of reducing the administrative and financial burden imposed on the Court and the LBI estate and expediting the process of reconciling the general creditor claims, the Trustee filed on October 22, 2012, a a Motion for approval of general creditor claim objection procedures and settlement procedures. On November 15, 2012, the Bankruptcy Court entered an Order approving the general creditor claim objection procedures. The proposed settlement procedures will be heard by the Bankruptcy Court on February 13, 2013.
The Trustee, by and through his Claims Agent, EPIQ Systems, maintains Customer and General Creditor Claims Registers. Parties-in-interest may obtain online access to review the General Creditor Claims Register and filed-claim forms by clicking here. Please note the claim images have been redacted and supporting documentation removed. To view claim images with supporting documentation consisting of addendums, annexes, supplements, summaries, exhibits please contact Epiq Systems at 646-282-2500 for secure access. Any supporting documents which have been deemed sensitive in nature such as employee letters or account statements have been removed. If you require a complete copy of the claim image you may contact Epiq Systems at 646-282-2500. Parties should take notice of the disclaimer associated with the General Creditor Claims Register.
Parties-in-interest may obtain online access to review the Customer Claims Register and filed-claim forms by contacting EPIQ Systems at (646) 282-2500. Parties should take notice of the disclaimer also accompanying the Customer Claims Register and the notes associated with the Customer Claims Register. In addition, parties should take notice that certain claims on the Customer Claims Register remain on that Register (rather than the General Creditor Claims Register) though the Customer Claims have been reclassified to General Creditor Claim status, subject to further determination by the Trustee in the General Creditor Claims process.
The Trustee, by and through his Claims Agent, EPIQ Systems, maintains Customer and General Creditor Claims Registers (the “Registers”). Parties-in-interest may view the General Creditor Claims Register here and may obtain online access to review the Customer Claim Register and filed-claim forms by contacting EPIQ Systems at (646) 282-2500. Parties should take notice of the disclaimers accompanying both Registers and the notes associated with the Customer Claims Register. In addition, parties should take notice that certain claims on the Customer Claims Register remain on that Register (rather than the General Creditor Claims Register) though the Customer Claims have been reclassified to General Creditor Claim status, subject to further determination by the Trustee in the General Creditor Claims process.
If a claimant disagrees with the Trustee's determination, the claimant may object and request a hearing before the Bankruptcy Court within thirty days of the date of the letter of determination. If a claimant fails to request a hearing within the thirty days, or if the claimant fails to appear at the scheduled hearing, then the Trustee's determination shall be final and the claim is closed.
Any claimant who requests a hearing will have an opportunity to have its dispute adjudicated by the Court.
Both customer and general claims may be transferred in the LBI SIPA liquidation proceeding. To receive notices and distributions with respect to a transferred claim, notice of a claim transfer (if any is required to be filed with the bankruptcy court) must be provided in accordance with Bankruptcy Rule 3001(e).
The Trustee neither encourages nor discourages claims trading. Potential transferors and transferees of claims should make their own independent evaluation of whether to enter into a claims trade based upon the public record in this case. The Trustee notes that a properly transferred claim merely provides the transferee with the right to pursue distributions on account of such claim. It is not a determination of the validity, amount or priority of such claim, nor of any claim or defense that the Trustee may have with respect to that claim or as against the transferor or transferee of such claim.
On June 7, 2012, the Trustee filed a notice of appeal to the United States Court of Appeals for the Second Circuit regarding a ruling handed down by Judge Katherine B. Forrest of the U.S. District Court for the Southern District of New York. Judge Forrest’s ruling was on appeals from the Trustee and Barclays Capital Inc. stemming from the Bankruptcy Court’s opinion on assets disputed by the parties related to the September 2008 sale of LBI to Barclays. The Trustee, Barclays and various other parties have filed briefs regarding the appeal to the Second Circuit, and the parties conducted oral argument before the Second Circuit on May 29, 2013.
The Trustee is appealing the District Court’s decision on the margin and clearance box assets. The Trustee believes he has strong grounds for recovering these assets for the ultimate benefit of LBI customers and other creditors.
Judge Forrest, in a June 5, 2012 ruling, rejected Barclays’ claim to $769 million in LBI’s Rule 15c3-3 customer reserve accounts and $507 million that is considered part of LBI’s required Reserve Bank Account. Judge Forrest also ruled that the LBI estate is not entitled to approximately $3.5 billion in margin and other assets used to support LBI’s derivatives trading and roughly $2 billion in certain assets in LBI’s clearance boxes at Depository Trust & Clearing Corporation.
The Trustee strongly believes that the former customers of Lehman Brothers Inc. are entitled to the margin and clearing box assets and that the law and facts support his claims to these assets, and his duty to customers mandates that he continue to pursue all legal avenues to recover the assets for the LBI estate.
The District Court’s ruling overturned a previous ruling by U.S. Bankruptcy Judge James M. Peck awarding margin and other assets to the LBI estate. In the earlier decision, made after 34 days of trial, Judge Peck rejected Barclays’ claims to the margin assets. Judge Peck found that the assets remained with the LBI estate and did not transfer to Barclays with the sale in 2008. The Trustee believes the Bankruptcy Court’s carefully considered factual findings and rulings were correct and that these assets should be available to repay LBI’s public customers and others.
Due to the expected extended legal process on these issues, the Trustee has appropriately reserved for the Barclays litigation.
On September 20, 2008, the Court entered an Order Under 11 U.S.C. §§ 105(a), 363, and 365 and Federal Rules of Bankruptcy Procedure 2002, 6004 and 6006 Authorizing and Approving (A) The Sale of Purchased Assets Free and Clear of Liens and Other Interests and (B) Assumption and Assignment of Executory Contracts and Unexpired Leases (the "Sale Order"). Click on the links below to see the various documents associated with the sale.