Dallas billionaire T. Boone Pickens files $60 million lawsuit against Lehman Brothers

Pickens' lawsuit demands $60 million plus interest and attorney fees from a unit of the late great Lehman Brothers investment bank. Pickens personally claims the largest share of this money—$18.2 million. Four of his BP Capital hedge funds claim the balance (including one registered in the Cayman Islands, a popular tax haven).

The Pickens plaintiffs allege that they entered into derivatives contracts with a Lehman Brothers unit in October 2007. Such contracts are widely used to hedge the financial risks that investors face as a result of the fluctuating value of such commodities as foreign currencies or oil. The plaintiffs allege that these contracts contained default clauses that obligated Lehman to make substantial, immediate payments in the event of bankruptcy. Not surprisingly, the plaintiffs claim that Lehman has not made any such post-bankruptcy payments.