Lehman Brothers’s Australian unit must repay three towns that invested in failed securities, a judge ruled. The lawsuit’s sponsor said the case is the first of its kind to complete a trial.
Lehman’s unit “engaged in misleading and deceptive conduct,” Federal Court Justice Steven Rares said. The unit “is liable to compensate the councils for their losses,” he said in issuing the decision in Sydney on Friday.
Grange Securities, which was bought by Lehman, invested the towns’ money in securities whose value collapsed.
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