Flip clause ruling nets Lehman estate $3 billion

Judge warns legal uncertainty remains, however

Lehman Brothers' collapse
Litigation between the Lehman estate and other counterparties is still ongoing

The judge who presided in the landmark Lehman Brothers bankruptcy case – and ruled that a controversial clause in credit derivatives contracts that would have given creditors priority in termination payments was invalid – says the use of his ruling in non-public mediations has allowed the bank's estate to recoup $3 billion from creditors. "Hundreds of mediations have taken place [with] Lehman. I am not privy to what happened in those mediations, but I am privy to the results of th