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Lehman Australia successfully sued

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Lehman Australia successfully sued

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A group of councils, churches and charities in Australia has successfully sued the Australian arm of failed investment bank Lehman Brothers.

Although an amount has not been awarded yet, the judge ruled the group is entitled to compensation for the way Lehman acted in the run-up to the financial crisis four years ago.

It was found that Lehman did not advise the group on risks involved in highly complex financial products.

The outcome may have global ramifications and this is considered a test case as it is the first in the world to look at the conduct of an investment bank.