Well, it turns out that isn’t so. There is a lawsuit against those Lehman Brothers subsidiaries called SCC Acquisition Inc. v. Lehman Ali Inc. et al, in U.S. Bankruptcy Court for the Central District of California, Adversary Proceeding Case No. 8:09-ap-01005-ES. The lawsuit was filed as part of the multiple SunCal entity voluntary bankruptcy cases consolidated in the bankruptcy court as In re Palmdale Hills Property LLC, Bankruptcy Case No. 8:08-bk-17206-ES. It turns out that the initials “SCC” means SunCal Companies. SCC shows up in the name of many of the SunCal entities. In SCC Acquisition Inc. v. Lehman Ali, the lawyer for plaintiffs Bruce Elieff, SCC Acquisition, Inc. and the other SunCal entity plaintiffs alleges that various SunCal parent companies issued guarantees to the insurance companies which issued completion bonds in connection with a large number of Lehman related projects. The lawyer for the SunCal plaintiffs also alleges that because the Lehman entities stiffed the Lehman/SunCal ventures, in terms of funding construction related obligations, the SunCal parent companies are at risk of having to make payment on those guarantees to the insurance companies who issued the completion bonds. Those same allegations are made by SunCal’s General Counsel, a Mr. Cook, in several declarations he signed, under penalty of perjury, and filed with the Bankruptcy Court in the Palmdale Hills, LLC bankruptcy case.

The upshot of SunCal’s in-court allegations that the financial stability of the SunCal parent companies, and thereby all of their projects, are put at severe risk of economic loss because of Lehman’s actions.

In plain English, Lehman stiffs the completion bond holders, the completion bond holders make demand on the insurance companies which issued the completion bonds, the insurance companies pay the completion bond holders, and as a result the SunCal entities or their human principals either have to reimburse the insurance companies for their multi-million dollar pay outs, or get sued ruining their insurability and creditworthiness.

In short, SunCal’s lawyers have repeatedly alleged that their whole empire could come crashing down because SunCal’s parent companies and principals are on the hook, financially, to pay the insurance companies who issued the completion bonds on the Lehman/SunCal projects.

As a result, the key question: Who is telling the truth about the SunCal empire’s economic stability and ability going forward? The lawyers filing testimony under penalty of perjury in the bankruptcy court, or the public relations flaks manipulating public officials and public opinion?