Overview
- Western Alliance filed a New York Supreme Court suit accusing Jefferies, Leucadia Asset Management and affiliates of breach of contract and fraud after two unpaid installments totaling $126.4 million.
- Jefferies says the Point Bonita loan was non-recourse, on market terms and subject to bank audits, asserting it acted in good faith and will defend the case vigorously.
- The financing was collateralized by receivables from First Brands, which filed for bankruptcy in September 2025; Western Alliance last received $42.125 million on January 15, with full repayment due by March 31.
- To offset the hit, Western Alliance targets about $50 million in securities sales (roughly $45 million already realized) and $50 million of expense reductions, leaving an estimated $26 million gap.
- Shares fell on the news, with Western Alliance down about 12% premarket and Jefferies off roughly 5% to 6.6%, as analysts warned of potential broader losses tied to First Brands.