The Administrators of Lehman Brothers International (Europe) (in administration) (“LBIE”), acting as LBIE’s agent and without personal liability, have advised that they will be filing an omnibus claim on behalf of LBIE and LBIE’s customers against Lehman Brothers Inc. (“LBI”) in its liquidation proceedings under the Securities Investor Protection Act of 1970 (“SIPA”).
On Sept. 19, 2008 (the “Filing Date”), the U.S. District Court for the Southern District of New York granted a Protective Decree ruling that customers of LBI are in need of protection under SIPA. James W. Giddens (the “SIPC Trustee”) was appointed trustee for the liquidation of LBI.
The deadline for customers of LBI to file claims is Jan. 30, 2009. Customer claims arise from a customer’s brokerage relationship with LBI. Specifically, a customer claim under SIPA is a claim of any person or entity on account of securities received, acquired, or held by LBI in the ordinary course of business as a broker or dealer from or for the securities accounts of such person for safekeeping, with a view to sale, to cover consummated sales, pursuant to purchases, as collateral security, or for purposes of effecting transfer. 15 U.S.C. § 78lll(2).
The Administrator’s omnibus claim will cover LBIE’s customers whose cash, securities or other assets were (or should have been) held by LBI on the Filing Date. The Administrators’ claim will not include cash, securities or other assets that were booked by customers directly with LBI. The Administrators’ claim does not prevent LBIE’s customers, who wish to do so, from filing a claim on their own behalf with the SIPC Trustee.
LBIE’s Administrators are collecting forms from customers granting LBIE authority to file a claim on their behalf so that the claim can be made by the Jan. 30, 2009 deadline.
Further information and a Customer Authorization form can be downloaded from the Administrators’ website using the following link: http://www.pwc.co.uk/eng/issues/lehman_client_money_and_assets_update_200109.html.