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Court rejects Lehman investors' claims

The Local · 27 Sep 2011, 16:18

Published: 27 Sep 2011 16:18 GMT+02:00

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The Federal Court of Justice in Karlsruhe ruled that the investors had not been inadequately or falsely advised by a Hamburg savings bank which had suggested they buy Lehman Brothers products.

The couple had each invested €10,000 in products issued by Lehman - on the recommendation of the Hamburg Sparkasse bank.

When Lehman Brothers declared bankruptcy, the investment papers became worthless. And although the certificates were 100 percent guaranteed, because they were not subject to deposit insurance they became worthless after the bankruptcy.

The couple - a teacher who has since died, and his nutrition advisor wife - had worked their way through the German court system seeking compensation for the alleged bad advice from the savings bank.

But the judges were sceptical that the savings bank was at fault. An explanation of the risk that the issuer of a bond might become insolvent is only necessary under certain conditions, and there was no indication that Lehman could go bankrupt when the certificates were bought in 2006 and 2007, one judge said.

Story continues below…

Consumer advocacy groups estimate that up to 50,000 German investors bought investment documents backed by Lehman, paying between €700 million and €1 billion for them.

DPA/The Local/emh

The Local (news@thelocal.de)

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Your comments about this article

17:18 September 27, 2011 by derExDeutsche
'According to estimates by consumer advocacy groups, around 40,000 to 50,000 investors in Germany bought investment documents backed by Lehman, investing €700 million to €1 billion. '

wouldn't it be nice if losing '€700 million to €1 billion' in Lehman's investments, was all that was wrong in Germany and the Euro.

23:14 September 27, 2011 by Englishted
Lies more lies and bankers.
12:13 September 28, 2011 by pepsionice
The way that investing works (in the real world)....you only invest or buy into what you can easily understand....like Volvo cars, Lays potato chips, or mouthwash. When someone devises some fantastic scheme and it takes thirty minutes to get basics across to you.....you can figure it's too complicated and likely to fail.
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