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Categories:Investments

Meteor drops Lehman-backed product judicial review

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Meteor is to repay a couple £20,000 they invested in one of its Lehman-backed products after agreeing to drop a judicial review of the Financial Ombudsman Service’s decision to award compensation.

The FOS ruled in February that Meteor did not treat the couple 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 applied for a judicial review of the FOS decision at the High Court in London.

However, this week the case was withdrawn with the consent of both parties and Meteor agreed to pay the couple ex-gratia payment.

A statement says: “As the client had received a final decision implying that they were to receive payment, as a matter of goodwill, Meteor has made an ex gratia payment to the client to conclude this matter.”

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Readers' comments (1)

  • Hundreds of others bought this and similar plans from Meteor. The consequences of losing or being refused permission for the JR could have been quite serious for the firm. Others with similar complaints now need to go through the FOS process which takes years and ties up FOS resources.

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