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Lehman's CDO investors take on S&P

Litigation funder IMF is to support a claim by 90 local councils, churches and charities against McGraw-Hill Companies Inc, which owns Standard & Poor's.Yesterday, IMF announced that the claim against S&P would be for losses sustained on investments in Lehman Brothers' CDOs (collateralised debt obligations).IMF has already funded a representative action against Lehman over the CDO losses. The liquidators of Lehman Brothers are seeking approval for a scheme of company arrangement that would result in the litigants receiving between 39.9 cents and 49.2 cents in the dollar.The claim against S&P, which rated the CDOs, will be for the balance of the losses plus interest.

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