Almost a year after Lehman blew up, Citadel’s Ken Griffin filed a claim last week in New York bankruptcy court, alleging the former bank owes him $470.5 million on derivatives contracts–a move that could trigger a wave of similar suits from other hedge funds who had exposure to Lehman’s credit default swaps.
Reuters points out that Citadel claims it is owed the money in its Citadel Equity Fund.
The filing said the claim was at least partly based on a guarantee, but did not give details.
Derivatives take their value from underlying assets, which can include debt, equity or commodities. The contracts can be used to hedge or bet on changes in the value of the underlying assets.
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