Lehman Wins U.K. Case Over Broker’s ‘Frail’ Commercial Morality

A mistaken trade between Lehman Brothers Holdings Inc.’s European unit and a broker backed by British billionaire Michael Spencer should be reset after the bank’s administrators won a London court battle over the “surprising and regrettable lapse,” a judge said.

Exotix Partners LLP must “reverse its own unjust enrichment,” Judge Robert Hildyard said Sept. 9 in his ruling. The case stems from a 2014 deal where a Lehman trader wrongly sent $7.7 million in Peruvian notes when the deal called for the settlement of notes worth just $7,700. After “some internal hesitation,” Exotix decided to pocket the windfall, the judge ...