Germany's Federal Court of Justice has ruled against a complaint brought by two investors in the collapsed US investment bank Lehman Brothers.

The country's highest criminal court decided the investors had not been given insufficient or incorrect advice by the German bank Hamburger Sparkasse, and said the bankruptcy of the US financial institution had not been predictable.

An explanation of the specific risk that a borrower might become insolvent would only have been necessary if evidence of a possible bankruptcy had been apparent at the time of the sale, said presiding judge Ulrich Wiechers.

The ruling is likely to have implications for some 40 other investors who have brought proceedings over their investments in Lehman Brothers.

"The verdict is a slap in the face for Lehman investors," said Manfred Westphal, a banking expert for the Federation of German Consumer Organizations (VZBV).

Bank expresses regret

Following the verdict, Hamburger Sparkasse said it did not consider itself "a winner" in the case.

"We particularly regret that it has come to legal disputes with customers," said Reinhard Klein, chairman for Hamburger Sparkasse.

The two investors had bought investment certificates from the bank for 10,000 euros ($13,600) each on the advice of Hamburger Sparkasse.

The pair sued after Lehman Brothers went bankrupt in 2008, when the certificates became virtually worthless. They claimed Hamburger Sparkasse had neglected to sufficiently inform them of the potential losses, as well as gains, they might accrue as a result of the investment.

Author: Richard Connor (AFP, dpa)
Editor: Martin Kuebler