Dick Fuld not liable to those who suffered losses from Lehman bankruptcy

Richard Fuld

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.

To access the complete Reuters article hit the link below:

Lehman employees lose appeal over stock losses from bankruptcy

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