Lehman Europe claims $1.4bn

The European arm of Lehman Brothers yesterday sued a unit of bond insurer Assured Guaranty, claiming more than $1bn for a series of credit derivative transactions. In a lawsuit filed in the US, Lehman Brothers International (Europe) said the unit, AG Financial Products, miscalculated termination payments under the deals, using an incorrect and approach to conclude it was owed nearly $25m. The lawsuit claimed a proper calculation resulted in AGFP owing the London-based unit about $1.4bn.