James Giddens, the trustee for Lehman Brothers, said the cash and securities would help cover some of the losses in the massive collapse that was a key point in the global financial crisis.
"This is a milestone... The agreement will increase funds held by the LBI Estate available for distribution to public customers of LBI by more than $800 million in cash and securities," Giddens said.
He said the deal came after both parties cooperated in working through "complex and difficult issues."
|US banking giant JPMorgan Chase agreed to pay some $800 million to settle claims stemming from the massive bankruptcy of Wall Street firm Lehman Brothers in 2008|
Lehman's September 2008 collapse marked the largest bankruptcy in history, triggering a financial shockwave that dragged the global economy into recession.
Claims from creditors were believed to be a whopping $875 billion, much of which would be written off under the reorganization.
A large portion of Lehman's assets were acquired by British bank Barclays for $250 million.
JPMorgan Chase said the settlement would not affect its results.