A recent Wall Street Journal article reports the legal and consulting fees paid by the Lehman Brothers bankruptcy trustee recently topped the one billion dollar mark. The top fee garners are restructuring firm Alvarez & Marsal, LLC ($369.3 million) and lead bankruptcy counsel ($245.8) million. Given creditors and investors stand to loses billions when all is said and done, it is somewhat surprising there has been little discussion or complaint regarding fees paid out by the trustee.
Among the interested parties are those investors of UBS who purchased Lehman Brothers structured notes called Principal Protected Notes (PPN), Partially Principal Protected notes (PPPN), Return Optimization Notes (RON) and Absolute Return Barrier Notes (ARN). These proprietary structured products were marketed to individual investors much like CD’s and other relatively conservative fixed income instruments. After Lehman Brothers filed for bankruptcy protection, on September 15, 2008, many investors filed FINRA arbitration claims alleging they were misled as to the fact they were actually buying unsecured Lehman Brothers debt and the associated risk.
The attorneys at Colling Gilbert Wright & Carter are currently litigating dozens of Lehman Brothers related note cases. If you believe you purchased a Lehman Brothers backed product based on misrepresentation or omission of risk, please contact our offices. Thank you.