In re Lehman Brothers Equity/Debt Securities Litigation
Case No. 08-CV-5523 (S.D.N.Y.). Girard Gibbs served as lead counsel and on the plaintiffs’ executive committee in this class action brought against UBS Financial Services, Inc. and former Lehman Brothers’ officers and directors. The lawsuit alleged that the defendants violated federal securities laws by selling structured notes despite knowing that Lehman’s ability to meet the obligations was highly questionable due to its worsening financial condition. The lawsuit also alleged that statements surrounding the “principal protection” notes were false and misleading because they did not adequately disclose that “principal protection” depended upon the solvency of Lehman Brothers.
After five years of litigation, including achieving class certification, Girard Gibbs negotiated a court-approved settlement that established a $120 million fund to resolve the claims. The recovery represents over a third of the class’s estimated recoverable damages at trial. The firm is unaware of any reported subprime or credit crisis-related securities settlement that has returned a higher average recovery for class members.