Jefferies, Western Alliance fall after dispute over $126 million payment

Western Alliance Bancorporation

06/03/2026 13:41

** Investment bank Jefferies shares' fall 2% to $43.4 premarket, after Western Alliance WAL.N sues it over its refusal to make $126.4 million in payments under forbearance agreement linked to First Brands Group

** Shares of WAL down 5.8% at $76 before the bell

** WAL says it had filed complaint in New York Supreme Court for "breach of contract and fraud" for "conduct related to a commercial loan collateralized by accounts receivable purchased from First Brands Group"

** Jefferies says loan was properly structured and diligenced; blames wide-ranging fraud at First Brands for losses and calls Western Alliance's lawsuit "meritless"

** JEF disclosed last year that its Leucadia Asset Management division, through its credit fund Point Bonita, held about $715 million in receivables linked to First Brands

** JEF is also under scrutiny after news emerged last week that it had 100 million pounds ($133.36 million) of exposure to failed lender MFS

($1 = 0.7499 pounds)

 (Reporting by Pragyan Kalita in Bengaluru)

 ((Pragyan.Kalita@thomsonreuters.com;))