I looked, but couldn't find another diary on this. I was surprised, because this seems like a BFD.
A judge in the land of Oz has gone postal on the Aussie arm of the defunct Lehman Bros.
Well, as postal as a judge can go, at any rate...
A group of Australian councils, charities and churches has won a Federal Court case against defunct investment bank Lehman Brothers in a case which could have global ramifications.I'm sure this is good news for McSame.
The judgment is considered a test case as it is the first in the world to look at the conduct of an investment bank, on both legal and ethical grounds, in the lead-up to the global financial crisis and how they behaved in the aftermath.
The class action involved 72 councils, churches and charities who sued Lehman Brothers for around $250 million, claiming it breached contracts and engaged in misleading and negligent conduct.
Justice Steven Rares has ruled that the parties are entitled to compensation but the amount has yet to be finalised.
They had sought compensation for losses incurred on investments they made on advice from Grange Securities, which was bought by Lehman Brothers Australia in 2007.
The investments had exposure to the housing market collapse in the United States.