Door opened for legal action against Lehman Brothers
The door has been opened for legal action against Lehman Brothers Australia, including action by New South Wales Councils and others that lost money in products promoted by the group.
The Federal Court has found that a Deed of Company Arrangement (DOCA), which had prevented such legal action by the councils and other parties, was not valid. The DOCA had prevented the councils and others from pursuing claims against various Lehman entities both in Australia and overseas, as well as preventing them from pursuing payment under various insurance policies, according to a statement from the group funding the litigation, IMF Australia.
“IMF will now fund those councils and other parties in litigation to recover monies lost when they invested in collateralised debt obligations arranged, issued and promoted by those Lehman entities,” the group’s statement to the Australian Securities Exchange said.
AUTHOR
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
