Failed US financial giant Lehman Brothers misled councils into thinking they were buying safe investments, the Federal Court heard yesterday.The claim came at the opening of the case, in which 72 councils, charities, churches and private investors are suing Lehman's Australian arm, Grange Securities, for $250 million.Wingecarribee Shire Council, the City of Swan and Parkes Shire Council say they were sold synthetic collateralised debt obligations, or SCDOs, even though they had asked to invest in less risky floating rate notes.Tony Meagher SC, representing the councils, told the court that council officials had "little or no knowledge of the complex structured investments", Bloomberg reported that some of the SCDOs allowed for a 100 per cent loss of capital in a default.The litigation funder, IMF Australia, is backing the suit. IMF's executive director, John Walker, told reporters yesterday that the CDO case was important because it would probably be the first such case globally in which a judgment would be issued.Lehman Brothers filed for bankruptcy on 15 September 2008 in the signal event of the global financial crisis. Its Australian arm followed 11 days later.The trial continues.