In Australia, litigation funder IMF intends to fund a $1.2 billion class action on behalf of investors that have suffered losses after investing with Lehman Brothers Australia. The Age reports that IMF said the action could benefit up to 600 investors that bought complex debt securities that have plunged in value.
The Age reports that “the first phase of the action is on behalf of Parkes Shire in NSW and Swan Council in Western Australia, but IMF is confident of support from other investors including more councils, charities, churches, and universities.”
IMF executive director John Walker, said plaintiffs would allege the failed investment bank breached its fiduciary duty by putting its own interests before those of its clients: ”What Lehman did was go out and create their own products and sell these products to the councils. As a result of them acting in their own interests, the councils, charities and churches have ended up with potentially in excess of $1 billion in losses.”
