$120 Million Recovery for Investors in Lehman Brothers Structured Products
In re Lehman Brothers Equity/Debt Securities Litigation, No. 08 Civ. 5523(LAK) (S.D.N.Y.), Zwerling Schachter, as co-counsel, recovered $120 million for a certified class of investors in 84 Lehman-issued structured products sold by UBS Financial Services, Inc. This settlement is among the highest securities class action settlements ever obtained by non-institutional plaintiffs since the enactment of the Private Litigation Securities Reform Act in 1995. The lawsuit alleged that the underwriter and seller of the structured products was liable under Sections 11 and 12(a)(2) of the Securities Act of 1933 for materially false and misleading statements and omissions in the offering documents about Lehman’s financial condition and the “principal protection” feature associated with many of the notes.