Summary - Federal Court rules Lehman Brothers
Australia is financially liable for misleading clients including
Church and Not-For-Profit Groups to purchase complex financial
products.
In
Wingecarribee Shire Council v Lehman Brothers Australia Ltd (in
Liq) [2012] FCA 1028, the Federal Court of Australia has
held that Lehman Bros Australia Ltd (In Liq), which was formerly
called Grange Securities Ltd (Grange), is liable
to compensate the 3 plaintiff Councils for losses incurred as a
result of investing in highly complex investment products called
collateralised debt obligations (products).
In this matter the 3 Councils led representative proceedings or
a 'class action' on behalf of 72 other Councils, charities,
Church and Not-For-Profit groups who collectively lost over
$200million when the products purchased from Grange prior to 2008
either plummeted in value or were completely wiped out during the
global financial crisis (GFC). While only the
claims of the 3
