City secures legal claims

A JUDGE has sustained a class action claim by a group of former Lehman Brothers shareholders, including Edinburgh City Council.

District Judge Lewis Kaplan sustained, in large part, claims asserted by former Lehman Brothers shareholders related to the company's 2008 collapse, and the claim can now proceed.

The judge held that plaintiffs had sufficiently alleged federal securities claims against former Lehman Brothers in issuing billions of dollars in worthless securities prior to its bankruptcy.

The plaintiffs included the council as Administering Authority of the Lothian Pension Fund who alleged that the defendants materially misrepresented Lehman's financial position.