The hearing resumed today, with applicants' final submissions commencing tomorrow, in a class action brought by 72 local government councils, charities and churches
against global investment bank Lehman Brothers Australia Limited (formerly Grange Securities Limited).
The Councils, led by Wingecarribee Shire Council, seek $248 million in compensation from Lehman Australia for claims including breach of contract and fiduciary duty, misleading conduct and negligence. The claims relate to the way CDOs (Collateralized Debt Obligations) and other synthetic structured products were sold and marketed to the Councils.
National law firm Piper Alderman (NSW, Australia) , led by partner Amanda Banton, represents the Applicants. Amanda Banton said:
'I am looking forward to the completion of the trial and achieving a successful outcome for our clients. The findings in the Lehmans case may well have serious implications for the LGFS, ABN AMRO and Standard and Poors case we are currently running and which is set to commence trial in October 2011 for 10 weeks.'
Amanda Banton is currently investigating claims similar to those at the centre of the Lehman's case against the Commonwealth Bank which issued the financial services products "Palladin" (which has collapsed leading to losses to investors who held that note of approximately $25 million), "Oasis" and "Pure".
Piper Alderman is also investigating claims against various other issuers of CDOs and CPDOs (Constant Proportion Debt Obligations) including in relation to the products known as "Surf", "Surf 2" and "Surf 3" issued by ABN Amro and "Tyger" issued by UBS.
