Lehman BrothersSummary – Update:  Local Councils, Church, Charities and Not-For-Profit Groups who purchased complex financial products from Lehman Brothers are set to vote on a settlement proposal to get up to half their money back from liquidators of the failed investment bank.

You may recall we posted a blog article in October 2012 titled “Lehman Brothers class action – a win for NFPs” regarding the representative proceedings or ‘class action’ filed on behalf of 75 Councils, Charities, Church and other Not-For-Profit groups who collectively lost over $200million when they purchased toxic securities sold by a subsidiary of Lehman Brothers called Grange Securities (Grange) prior to 2008.

After a long running legal battle the Federal Court held last October that Grange had breached its fiduciary duty to 3 Councils who filed proceedings as representative plaintiffs on behalf of 72 other Councils, charities, Church and other Not-For-Profit groups. By filing representative proceedings the Court may resolve issues of fact and law involving the applicants and the respondent that are common to claims that other group members have against the same respondent.


Continue Reading Update: Local Councils, Church, Charities and Not-For-Profit Groups to vote on settlement proposal relating to failed investment bank, Lehman Brothers