PricewaterhouseCoopers' (PwC) plans for Lehman Brothers International Europe (LBIE) have been rejected by the High Court.
The firm, which is acting as administrator for the failed bank, was hoping to split creditors into three groups to help speed up the process.
It would have also used money held in custody on behalf of hedge funds to help pay PwC's costs, rather than setting them against money owed to unsecured creditors.
However, the judge in the case ruled that the court has no jurisdiction to sanction a scheme which modifies the claims of affected clients in the way this one would.
Steven Pearson, joint administrator, said: "While this is a setback, I am determined to find a way to get these assets back to clients as soon as possible."
The firm will now look at the ruling and decide whether it will make an appeal.
It could be that PwC modifies its plans in light of the court's decision, Mr Perason added. LBIE filed for bankruptcy in 2008.
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