Court Upholds $10M Award Against Lehman

Law360, New York (August 10, 2007, 12:00 AM EDT) -- Investment bank Lehman Brothers Inc. must fork over more than $10 million to five investors after losing its appeal against an arbitration ruling in a case stemming from a massive fraud masterminded by a stockbroker.

In an opinion published Wednesday, the U.S. Court of Appeals for the Sixth Circuit upheld a district court's decision to deny the bank's request to vacate the ruling, saying it found no merit in Lehman's arguments that the investors had suffered little "out-of-pocket" loss, and had actually profited by the fraud...
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