Lehman Appeals to District Court on Barclays Sale

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Lehman Brothers Holdings Inc appealed Wednesday a U.S. bankruptcy court ruling that upheld the sale of its North American securities business to Barclays Plc, according to court documents.

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Lehman, whose suit against Barclays was overruled in part by Manhattan bankruptcy court Judge James Peck earlier this year, said in July it planned to appeal.

Other parties in the case, including Barclays and the trustee liquidating Lehman's brokerage, have also filed appeals.

In the documents, filed is U.S. District Court for the Southern District of New York, Lehman appealed the bankruptcy court order that dismissed five counts in the lawsuit it filed against Barclays.

Lehman has said Barclays got a sweetheart deal in acquiring its U.S. investment bank and brokerage operations in the days after it filed for bankruptcy in September 2008, the largest U.S. bankruptcy ever. It said Barclays had not made key disclosures and received an illegal windfall of about $11 billion.

Peck called the sales process ``imperfect,'' but said any disclosure lapses were not serious enough to affect the fairness or outcome of the sale.

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The case is in re Lehman Brothers Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 08-13555 and adversary case No. 09-01731. (Reporting by Caroline Humer and Grant McCool; editing by Andre Grenon)