Lehman Prime Brokerage Case Goes To U.K. Supreme Court

Dec 27 2010 | 2:20am ET

GLG Partners has won the right to appeal a ruling that could cost it—and other clients of Lehman Brothers' prime brokerage—billions of dollars.

The U.K. Supreme Court granted the hedge fund, now part of the Man Group, the right to appeal a lower-court ruling from this summer, that would allow clients whose assets were not properly segregated by Lehman Brothers International to share in the pool. GLG and other clients who assets were properly segregated had won an earlier court battle with a ruling that only those clients with properly ring-fenced money should have access to a US$2.1 billion pool for prime brokerage clients.

GLG was opposed, and defeated in the U.K. Court of Appeal, by another hedge fund, CRC Credit Fund.

The Supreme Court also denied a bid by the Lehman estate to appeal another part of the Court of Appeal ruling.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…