Legal claims against Lehman were permitted in Australia

 IMF (Australia) Ltd reported that an Australian court permitted investors to pursue financial claims against collapsed U.S. investment bank Lehman Brothers in Australia and elsewhere. Now town councils and others which had lost money in collateralized debt obligations marketed and issued by Lehman can submit legal claims to recover their losses.

"The full court found against the validity of a Deed of Company Arrangement which had the effect of preventing the councils and others from pursuing claims against various Lehman entities in Australia and elsewhere and from pursuing payment under various insurance policies," IMF said in a short statement.

"IMF will now fund those councils and other parties in litigation to recover monies lost when they invested in collateralized debt obligations arranged, issued and promoted by those Lehman entities."

After the collapse Lehman’s estate is facing numerous claims from creditors worldwide, including bondholders, derivatives counterparties, states, towns and individuals.

Last month administrators of the London arm of Lehman Brothers reported that the claims it is handling against the collapsed Wall Street bank could total as much as $100 billion. The amount invested by about 35 councils in Australia is A$25 million ($22 million).