{"id":5458,"date":"2013-04-23T00:00:00","date_gmt":"2013-04-23T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/04\/lehman_brothers_australia_want"},"modified":"2022-03-09T16:28:50","modified_gmt":"2022-03-09T22:28:50","slug":"lehman-brothers-australia-want","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/lehman-brothers-australia-want\/","title":{"rendered":"Lehman Brothers Australia Wants Federal Court to Approve $248M Settlement Payment Plan to Creditors"},"content":{"rendered":"\n<p>The liquidators of Lehman Brothers Australia want the Federal Court there to approve their plan that would allow the bank to pay $248M in securities losses that were sustained by 72 local charities, councils, private investors, and churches. Although the court held Lehman liable, no compensation has been issued because the financial firm went bankrupt.<\/p>\n<p>Per that ruling, the Federal Court found that Lehman\u2019s Australian arm misled customers during the sale of synthetic collateralized debt obligations. The court also said that Lehman Brothers subsidiary Grange Securities was in breach of its fiduciary duty and took part in deceptive and misleading behavior when it put the very complex CDOs in the councils\u2019 portfolio. (Lehman had acquired Grange Securities and Grange Asset Management in early 2007, thereby also taking charge of managing current and past relationships, including the asset management and transactional services for the councils.) The court determined that the council clients\u2019 \u201ccommercial naivety\u201d in getting into these complex transactions were to Grange\u2019s advantage.<\/p>\n<p>Via the liquidators\u2019 plan, creditors would get a portion of a $211 million payout. This is much more than the $43 million that Lehman had offered to pay. The payout would include $45 million from American professional indemnity insurers to Lehman, which would then disburse the funds to those it owes. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/lehman-brothers-australia-want\/\"  title=\"Continue Reading Lehman Brothers Australia Wants Federal Court to Approve $248M Settlement Payment Plan to Creditors\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The liquidators of Lehman Brothers Australia want the Federal Court there to approve their plan that would allow the bank to pay $248M in securities losses that were sustained by 72 local charities, councils, private investors, and churches. Although the court held Lehman liable, no compensation has been issued because the financial firm went bankrupt. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3824,3741],"tags":[],"class_list":["post-5458","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-lehman-brothers","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lehman Brothers Australia Wants Federal Court to Approve $248M Settlement Payment Plan to Creditors &#8212; Investor Lawyers Blog &#8212; April 23, 2013<\/title>\n<meta name=\"description\" content=\"The liquidators of Lehman Brothers Australia want the Federal Court there to approve their plan that would allow the bank to pay $248M in securities &#8212; April 23, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/lehman-brothers-australia-want\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Lehman Brothers Australia Wants Federal Court to Approve $248M Settlement Payment Plan to Creditors &#8212; 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