Pending court approval, Lehman Brothers Holdings will pay out $40 million to investor groups to settle damage claims totaling $7.7 billion, reports Reuters.
This will bring legal closure, however paltry, to Lehman’s toxic subprime mortgage bundling that nearly brought the global financial system to its knees in 2008.
This chapter of the Lehman saga ends not with a bang, but with a whimper. Reuters quotes Steven Toll, an attorney representing investors: “[$40 million] is modest given the potential damages in the case, but under the circumstances it is a good result. The problem is there was just no money to get.”
Next up for what remains of Lehman: bankruptcy reorganization. A hearing on the matter is scheduled for December 6th, reports Reuters.