It sounds like the flight was a Continental flight, not a Lufthansa flight. Your ticket may have a Lufthansa flight number, but the issue in question was with the Continental flight as I understand it.

There are indeed regulations concerning compensation and accommodations for passengers on flights departing from the EU (or on flights to the EU operated by EU airlines).

Continental has posted information on its website:
http://www.continental.com/web/en-US.../eudenied.aspx