Lehman Brothers’ investors sued the firm’s ex-directors for billions after its collapse, but those shareholders have accepted a $90 million deal that will be covered entirely by insurance.
A federal judge signed off on the deal Thursday, noting that some people might be concerned that Lehman’s ex-directors won’t actually have to pay any money into the settlement.
But Judge Lewis Kaplan said the plaintiffs’ lawyer’s judgement that “the $90 million bird in the hand” was better than one in the bush was reasonable.
The shareholders blamed Lehman’s spectacular 2008 collapse on those ex-directors, and they filed suit claiming they invested in the firm based on bogus statements.
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