Intel Is Getting Sued By This Dead Firm

Dirty Money

Reaching a decomposed hand far out of the grave and back into the realm of the living, Lehman Brothers brought a lawsuit against Intel (NASDAQ:INTC) Tuesday, accusing the chip manufacturer of taking $1 billion in collateral, which breached a swap agreement made between the two companies.

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As a bankruptcy court filing obtained by Reuters showed, the swap agreement was executed just days before Lehman Brothers filed for bankruptcy in 2008. Under the terms, Intel gave $1 billion to the over-the-counter derivatives unit of the financial services firm in exchange for 50.5 million shares of its stock, which would be delivered on the settlement date of September 29, 2008, giving both companies access to different streams of cash flows.