The remnant of Lehman Brothers has settled a $1.2bn derivatives lawsuit with Credit Suisse, wrapping up one of the last remaining big legal battles involving the failed investment bank nearly a decade after its collapse.

Creditors will recover about $280mn on Credit Suisse’s derivatives claims against Lehman, according to a Wall Street Journal analysis of bankruptcy court filings. But most of that cash is earmarked for other investors, mainly hedge funds, because the Swiss bank does not own most of the claims.