Jefferies Sued by Western Alliance Over First Brands Bet (1)

March 6, 2026, 4:28 PM UTC

Jefferies Financial Group Inc. was sued by Western Alliance Bancorp over a loan tied to bankrupt auto-parts company First Brands Group.

The lawsuit, filed Friday in New York state court, accuses Jefferies and its Leucadia Asset Management unit of breach of contract and fraud over their alleged failure to repay a loan that was collateralized by First Brands receivables. The auto-parts supply company filed for bankruptcy in September and is embroiled in a criminal case alleging it falsified or inflated those receivables.

The court filing escalates the fight between Western Alliance and Jefferies over debt tied to First Brands. ...

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