Richard Fuld, the former CEO of Lehman Brothers, is not liable to onetime employees who suffered millions of dollars in losses in company stock as the bank descended into bankruptcy, a federal appeals court has ruled.
Reuters reports that by a 3-0 vote, the 2nd U.S. Circuit Court of Appeals in Manhattan said Fuld and a Lehman benefit committee were not legally at fault for letting employees participate in an employee stock ownership plan that invested in company stock.
Friday's decision upheld a July 2015 ruling by U.S. District Judge Lewis Kaplan in Manhattan, and could end one of the last lawsuits stemming from Lehman's September 2008 collapse.
The Lehman plaintiffs lost despite a 2014 U.S. Supreme Court decision involving Fifth Third Bancorp that lessened the defenses available to banks in similar cases.
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