Australian Creditors OK’d To Sue Over Lehman Losses

Law360, New York (March 30, 2010, 4:26 PM EDT) -- Australia's highest court has ruled that creditors of Lehman Brothers Holdings Inc.'s Australian subsidiary can sue other Lehman units to recover losses stemming from collateralized debt obligations, affirming a lower court’s ruling.

The High Court of Australia said Tuesday that it agreed with a lower Australian court's decision that a settlement between Lehman Australia's creditors, which barred claims by creditors against other Lehman units, was void, rejecting an appeal by Lehman.

The court said it would publish the reasons for its decision later.

IMF (Australia) Ltd.,...
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