Alerts

LBIE Update: U.K. Appeals Court Expands Scope of Client Money Pool and Universe of Clients Eligible for Client Money Pool Distributions

August 10, 2010

The U.K. Court of Appeal (the “Court of Appeal”) on Aug. 2, 2010, handed down a long-awaited decision regarding an appeal related to the scope of, and eligibility to receive distributions from, the Lehman Brothers Europe (International) (“LBIE”) pool of client money. Lehman Bros. Int. (Europe) (In Administration) v CRC Credit Fund Ltd. & Ors, [2010] EWCA Civ 917 (appeal taken from the Chancery Division) (U.K.).

The immediate impact of the Court of Appeal’s decision is to expand the scope of the client money pool itself and the universe of claimants entitled to seek distributions from that pool. LBIE’s joint Administrators are currently considering the effect of the decision on “the timing and level of any distribution of client money to LBIE’s clients.”