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

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.