Meteor settles first Lehman-backed product case

Laura Miller
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Meteor Asset Management has agreed to repay a couple £20,000 they invested in one of its Lehman-backed products in a landmark out-of-court settlement.

The FOS ruled in February Meteor did not treat Mr and Mrs B fairly when it failed to inform them Lehman Brothers, the counterparty of their Prima Growth Plan 7, had been downgraded by Standard & Poor's from A+ to A. Meteor disputed the claim and took the FOS to court for a judicial review into its decision at the High Court in London. However, this week the case was withdrawn with the consent of both parties after FOS said it would not contest the review. Meteor then agreed to pay the couple in full. Simon Bottomley, finance director at Meteor, said the asset manager settled to avo...

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