The Consumer Council has launched comprehensive investigations into 50 complaints on Lehman Brothers-related products.

Its Consumer Legal Action Fund Management Committee Chairman Prof Johannes Chan said evidence will be collected and preliminary legal analysis undertaken.

The council has received 3,638 complaints and 1,388 enquiries on the products and has preliminarily screened more than 600 cases, selecting 50 for further processing.

"Selection criteria is primarily based on complainants' vulnerability, the cogency of evidence, inadequacy of risk disclosure, misrepresentation and other factors to see whether the litigations should be funded and assistance granted in the cases," he said.

The chosen cases involved more than 10 banks.

Work outsourcing

There were also two direct applications to the legal action fund for assistance. One received two weeks ago was found to have sufficient evidence but was later withdrawn by the complainant. Another received yesterday is being processed.

Prof Chan said due to the large number of cases and to expedite the work the council has commissioned part of it to qualified lawyers in private practice to screen cases, take out statements and prepare legal analysis to help the fund take further action.

He added the management committee will hold a meeting to discuss strategic plans and how to handle the large number of applications.