Greece’s Supreme Court decided in favor of the wideow of a Greek pensioner who took defunct finance firm, Lehman Brothers, to court reports daily Greek newspaper, Ethnos. The Greek court found that the bank took advantage of the woman’s inexperience in financial investments and convinced her to pour her money in “toxic products”, hence it must return the whole amount of her investment and also compensate her for moral damages.

The verdict was according to the Civil Code and consumer protection legislation and concerns an investment made eight years ago when the woman placed all her savings and those of her deceased husband in a fixed account so as to meet the future needs of her children. Though she had ased for an investment with minimal risk and a high return she was pressured by the US firm to invest in mutual funds. She initially refused, but Lehman Brothers took advantage of her ignorance and convinced her to open a portfolio account with foreign three-year securities. She invested 74,000 euros but was informed in Septemer 2008 that the parent company where her investment was being held was bankrupt. She was informed in writing that it was impossible to liquidate, bearing in mind that the value of the securities was negligible.

The woman appealed to the courts for compensation and won her case after years of legal battle. The behavior of the foreign bank was considered unlawful on account of its filure to inform the widowed woman of the risks of foreign securities. The woman is now to receive 75,000 euros for the return of her investment and 1,500 euros as compensation for moral damages.

Ethnos newspaper reports that another two Greek investors will receive the return of their investments, valued at 100,000 euros and 45,000 euros respectively. Like the widowed woman, they will also be compensated for moral damages.