Lehman Brothers Class Action Lawsuit Filed
September 26th, 2008 • Filed Under: Financial Fraud, News • 64 Comments
A Lehman Brothers class action suit has been filed on behalf of investors who purchased Lehman Preferred Series “J” stock shares issued between February 5, 2008 and September 15, 2008.
The lawsuit was filed against several Lehman executives, as well as firms that underwrote the offering, claiming that false and misleading statements were made about the financial strength of the investment bank.
On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection, causing substantial losses for investors. The collapse began in 2007 when the mortgage market crisis unfolded, as Lehman was heavily invested in subprime mortgages.
The Lehman Brothers lawsuit was filed on Wednesday in the U.S. District Court in Manhattan by institutional investors Fogel Capital Management. The complaint names the former CEO, other former Lehman directors, Bank of America, Citigroup, Merrill Lynch and other firms that underwrote the offering of the Lehman Preferred Series “J” shares.
In February 2008, 76 million of the preferred shares were sold at $25 each, for $1.9 billion offering. Following the collapse of Lehman Brothers, the shares have fallen to under 10 cents, which has resulted in huge losses for investors.
The suit seeks class action status on behalf of all investors who purchased the Lehman Preferred Series “J” stock shares.
The lawsuit alleges that the prospectus issued prior to the offering failed to reveal Lehman’s large exposure to the sub-prime mortgage market and contained various false and misleading statements about the financial strength of the company.
Comment by Dick Fuld on 26 September 2008:
I deserve to go to jail.
Comment by Marianne on 1 October 2008:
Does anyone know if I owned bonds are they included in the class action lawsuit ? Is there a seperate lawsuit for the bonds.
I am an elderly woman who had all of her savings in the LEHMAN BROTHERS loss.
Comment by Louis on 1 October 2008:
We invested in the Series J Bonds in March 2008. The $150,000 in bonds collapsed to $19,000 at the time of the bankruptcy. We were never told of the financial trouble of Lehman Brothers, but were told they were a sound institution that was strong because of it’s world wide distribution.
3 months ago I contacted a financial advisory from Washington Mutual to discuss selling $50,000 of the bonds to pay for needed upgrades to our property. After touring the property, the advice was not to sell bonds that have decreased in value, it was best to take a loan against the bonds, do the work, and wait for a market rebound. He still did not tell me Lehman Brothers was in turmoil. and blamed the loss on market values
They liquidated the bonds on one days notice to pay back the full amount of the loan and now we will owe them $26,000.
Within 6 months our life’s savings went from $150,000 to a $26,000 debt. My mother’s life savings, that was for her health care, is gone.
Comment by Bob on 2 October 2008:
Does anyone know of a lawsuit including Lehman’s common shares?
I have 1000 shares. When $28,000 turn into $200, it hurts … .
Comment by Rita on 3 October 2008:
We did an investment through Millennium BCP Bank in Portugal. The investment was Lehman brothers UK Cap Fund. The investment was taken out in April 2007 and the money was to be kept in the fund until 2012. We were told that if you took out the money out before the time., it would be paid out on the value of the investment. If the investment was doing well, that was good if not then you would loose. But if you took it out on the due time the money that you initially invested was guaranteed. Now that this happen to Lehman’s the bank is not keeping to its word, and it looks like we will loose all the money that we invested. What can we do?? appreciate any info.
Comment by leslie on 6 October 2008:
I too would like to know if anyone knows of a lawsuit for
share holders who had common shock?
Comment by celia on 7 October 2008:
Does anyone know if bonds are included in this class action or is there a different class action againts LB …also, is there any blog o list of people involved ?
Comment by GWBMAD on 7 October 2008:
On recommendation of Millenium BCP in Portugal I invested a high amount in Lehman bonds (ISIN) XS0301813522, with the argument that this was a safe investment without an risk. I am now seeking for law firms who file for class action suits. Any advice?
Comment by Pam on 7 October 2008:
I too had invested in Lehman stock. It went from $32000 down to $1600 when I cashed out. I have another 100 shares worth a whopping $14. I have suffered greatly as others and wonder why Lehman was not bailed out as others. What is the government going to do for all of our losses on stock devaluation?
Comment by jh christie on 8 October 2008:
how about the Lehman Bros Cap Trust V PFD Secs Ser M 6% –
are they included in any class action?
Comment by Paul on 10 October 2008:
There is evidence outside the U.S. that puts the Lehman Brothers problem and its link to GS [Goldman Sachs] into a completely different perspective.
It could thus help Lehman Shareholders recover their losses,
particularly those contempla\ting a lawsuit.
I’m American and an oversea victim of the Wall Street Collapse.
In my situation I can only issue a Warrant of Arrest against the Secretary of the Treasury.
Comment by Christina on 10 October 2008:
WHen I went to buy stocks about a month before they went bankrupt people were buying. It was $16.00 a share.How can they reccomend a purchase right before a crash. Someone is lying. I am a single parent and this was my sons money.
Comment by fred on 11 October 2008:
IN DECEMBER I BOUGHT $25,000. WORTH OF LEMAN BROS BONDS FROM FIDELITY INVESTMENTS. THE BONDS WERE RATED A BY MOODYS AND THE S&P RATING COMPANIES. SEEMS TO ME THEY EITHER LIED, OR ARE INCOMPETANT. I AM CURRENTLYR ALL OF IN THE PROCESS OF MOVING MY ACCOUNT FROM FIDELITY.
Comment by Eric on 12 October 2008:
add me to the list of potential investors suing: $17,000,000 Lehman Bros. Holdings notes: I put in $100K in Jan ‘08, today said to be worth $10K.
Comment by James on 15 October 2008:
I too bought Lehman on what I thought was sound advice, albeit, it was only $6000.00 worth of stock ) worthless now. Does anyone know of a class action suit. Why not take Dick Fuld’s Millions and pay us back!
Comment by Elsie on 17 October 2008:
To all of the people who have posted comments on this site, I too am very intrested in joing a class action lawsuit against LB. I am an eldery women who needed the intrest of my Lehman Brothers Corporate Bonds to live on and pay all of my bills, I just cant believe what has happed, I am in a state of shock and am looking for any advise possible to take serious action against LB.
Comment by andrew on 20 October 2008:
Yes i also bought prefered stocks ( lehman bros) in the amount of 50,000.00 thru a financial services firm, on their sound advice that this was a safe investment and now the shares are worthless. Someone is lying or very incompetent. I am retired and was depending on the interest .
I am now seeking law firms who file for class action suits.
Comment by Jerry on 20 October 2008:
Does anyone know if there is any action being taken against the CEO who cashed in options worth 90Million Dollars just prior to the bankruptcy?.. does this not constitute insider trading?..
Does anyone know if there is any action is being taking with regard to the common stock?.. any information is GREATLY appreciated!.. like Marianne, i too am an elderly person who hat everything into Lehman.. \
Comment by James on 20 October 2008:
I put my 92 year old mothers life savings in AAbonds. Thinking I was investing in a sound investment. I want other people to join me in a Class action suite.Please respond if you wish to join me.We can’t let these bastards get away with our money.
Comment by elise on 21 October 2008:
i would like to know how i can get my money back with interest.
where is it written that CEO’s need to make so much money , money that is taken by shareholders…..
CEO’s make millions of dollars, have estates, cars, with our monies.. i want my money back !!
Comment by lee ann on 21 October 2008:
I too was advised to buy Bonds in this good rated company Lehman bros. Yes …someone sure made alot of money off all of us. I can not believe I lost all my retirement savings. What will we do now? This is not right for all those brokers to advise us to buy from a company that was in trouble…….I am sick sick sick !!!!!! how can you do this to people? You stole our money.
Comment by Angela on 21 October 2008:
Does anyone know if Preferred C Class shares fall in the same category as the J Class? I was advised to buy in April 08 and have lost over 50K. I would be very interested in being part of a class action suit with other holders of C Class shares.
Comment by milan on 22 October 2008:
I would like to pursue a lawsuit of Lehman management. I have short sold stock in May, Lehman claim was fraudulent and I have lost over $42K.
Comment by Gina on 24 October 2008:
Can the terminated employees of Lehman Brothers, who was let go a week before the bankruptcy filing, be allowed to file a lawsuit against Dick Fuld and LBHI? We were promised to be paid a substantial severance package including medical benefits until June, 2009. Within a week of signing the separation contract, a letter was sent to our homes informing us that LBHI and Barclays would not honor agreement. So now, with my savings exhausted and no salary to speak of, I am forced to apply for Medicaid and Food Stamps to survive.
Comment by lawrence on 24 October 2008:
I would like to be included in any class action law suit against Lehman Brothers. i purchased corporate bonds in the amt. of approx. $100,000. I am 67 years old and retired - there goes 1/3 of my retirement. HELP!
Comment by Mel on 24 October 2008:
Why just file against Series J? I have Preferred Series K 6.375% and the Preferred 6 %. I was told they were investment grade A rated.
Comment by J.Angelillio on 26 October 2008:
I lost am anothe casulaty when Lehman Bros. went belly up….I had preffered stock, in my retirement account. I want justice……this really hurts for me and fellow investors when you believed the company was sound from Moody’s and our respected advisers…If there isn’t alwsuit in process for preffered…let band together and crerate one…..
Comment by EDWARD on 26 October 2008:
i purchaseD 10000$ OF LEHMAN BROS HOLDINGS 6.5 5 PFDS ON OCT 18 2007. UBS BROKER SAID IT WAS A RATED.. THEY DIDNT DO DUE DILIGENCE IN SELLING THIS TO ME.. NOW WORTHLESS.. I AM 90 AND NEED THESE FUNDS .. WHAT CLASS ACTIONS ARE BEING PU RSUED.. BY THE TIME THEY ARE SETTLED.. I WILL BE LONG GONE..
Comment by ddavid on 27 October 2008:
My broker said Lehman was a good investment rated A+ or better.
Never even received an interest check on my investment. I lost 60,000 and I’m 68 years old. It just devastated me. I too would like to know who has class action going. Actually the RATING AGENCIES should be sued. Had they rated the bonds properly, few would have bought the bonds.
Comment by Ibrahim on 30 October 2008:
Standard Chartered Bank, Dubai also gave me misleading information about lehman perptual 6.9% XS0301813522 only couple of months before the bankruptcy while they gave me a term sheet showing INvestment grade for this particular bond and convinced me to invest nearly leveraged- US$ 300,000 in this bond, now they claim the leverage amount, can any one advise what can i do? this bond is issued by Lehman Uk Cap FD, is there any news about the liquidation and any amount could be recovered?
Pingback by Lehman Brothers Lawsuit to be Filed by California County : AboutLawsuits.com on 30 October 2008:
[...] month, a Lehman Brothers class action lawsuit was filed against the former executives and other firms who underwrote a offering of Lehman [...]
Comment by Tony D. on 31 October 2008:
My broker Smith Barney purchased 18,000 .00 worth of Leman Brothers common stock said it was a good investment great firm. Ha!!! I’m now out 18,000.00. I guess that’s how Smith Barney earns money they steal yours. If ever a class action suit please get in touch with me I’ll lead the charge to the court house.
Comment by Jim on 31 October 2008:
I invested in preferred notes several years ago. Would have sold my holding is I had known of Lehman Bros financial problems. Invested $15,000. now worth less that $1.
Comment by mike on 3 November 2008:
had 600 shares of preferred stock, which is now worthless. it was part of my retirement portfolio,which has been hard hit by the collapse. i’ll join a class action suit to get my money back and justice.
Comment by camille on 3 November 2008:
I purchased $50,000 worth of Lehman Preferred Series “J”in February, 2008 and 6 months later they were worthless. I would like to join this class action lawsuit. Incidentally, In March, 2008, I understand Dick Fuld was awarded a bonus worth millions of dollars . Is there something wrong with this picture?
Comment by James on 3 November 2008:
I had 50 k invested in their preferred stock and bonds bought through
another financial firm and certainly thought it to be investment grade.
I hope fuld and others go to jail (they won’t) but i would rather have
my monet back.
Comment by Carl on 7 November 2008:
I too purchased a $50,000 Lehman Brothers Holdings bond in December 04. This was sold as a safe investment that would pay 5.6%. I began to question my investment company when I noticed a dropping trend line in this bond value. I was repeatedly re-assured Lehman Brothers was rock solid and to stay the course. As referenced many times above, the course has ended. I am told we will recover some significant amount but no one is willing to give any solid information. Currently, it appears the class action legal path is the only one to take.
Comment by Pat on 7 November 2008:
My 96-year-old father worked at a blue collar job all his life and invested a large amount of his life savings in a Lehman Brothers bond, wanting a fixed income, guaranteed principal, and an automatic “transfer on death” to his daughters to avoid probate. My sisters and I don’t know how to help him try to recoup his money.
Comment by Dan on 9 November 2008:
My mom, 84, put $30,000 into Lehman bonds set to mature in 2013. It’s now worth peanuts. Someone has to pay for this negligence, mismanagement and malfeasance through a class-action suit, whether against Lehman or the brokerage house soliciting these bonds. A lot of people here have been burned and understandably want to get on board to recoup their money, but I haven’t seen any concrete lawsuit information.
Comment by Mary on 10 November 2008:
We are elderly and Ed Jones placed 20K of our retirement money with Lehman Bros. When we heard the news, we called them and they said to hold on to the end. Their main office kept telling the agents to advise their clients about this. please let us know if there is a class action lawsuit against Lehman Bros.
Comment by Lynn on 10 November 2008:
I agree that Dick Fuld needs to go to jail, but make sure I get my money back first. I too lost $55,000 on a corporate bond. I will join any class action suit against Lehman Bros.. I was told that the company was stable and had been in business for over 100 years. I was re-assured by my broker that the company was rock solid a week prior to the bankruptcy and that only the stock holders would be affected. Does anyone have any idea if this class action suit has been filed and if not how do we go about getting it started?
Comment by shirley on 12 November 2008:
I had funds invested in LB like many, many other folks. I would like to join a class action law suite too.
Comment by ken on 13 November 2008:
I purchases several thousand shares of leh days before the bankruptcy filing based on a press release of mr. fuld that indicated that they had well reserved for losses in market value of their assets,and they were well positioned.
With the Sarbanes Act the SEC should be all over the CEO and CFO with both civil and criminal actions.
Mr. fuld cannot in clear conscience say he just discovered leh”s problems in sept. 08 with the book net worth in the $26b range.
Comment by Arlyn on 15 November 2008:
People, remember - only YOU, put money you could not afford to lose into Common Stock. We are in a Depression! Read the history of
1929. The Government is making it worse by printing money that is
worthless. Giving all the manufacturing to China, Japan, South America, Mexico and many more countries has taken away what made
America a rich country. Buy back, at inflated prices has eaten away
at our economy. Point the finger at Stupid People in DC, and greedy
companys looking for huge profits using slave labour and you now
have the 2nd fall without capable elected Presedent to help you.
You put a bastard in power, lick your wounds and eat your losses!
I voted American! 52% of you did not! I wonder how many votes
were illegals?
Arlyn
Comment by frederick on 16 November 2008:
I too was solicited to buy $50,000 preferred lehman bonds in february, 2008 as a solid AA investment
Comment by Mary on 20 November 2008:
We’re all in the same boat being elderly and losing our life savings. This is a national disaster and we are getting no help. I called our state senator and they gave me Lehman’s phone number. They told me I’ll get a letter from them with a form to file. Here’s the number: 1888-756-5294. At least, we can call them. Let’s all pray about this. God does answer prayers. lovingly Mary
Comment by JULES on 22 November 2008:
I PURCHASED $30000 LEHMAN BROS. LEHMAN NOTES 2/22/05 5.6% DUE 2/25/30 THRU EDWARD JONES IT IS CURRENTLY WORTH $1300. I AM INTERESTED IN A CLASS ACTION SUIT TO ALSO ADDRESS THE WAY EDWARD JONES HANDLED THIS FIASCO.
Comment by urko on 22 November 2008:
My mother and I also have been injured with 80,000 which is an important part of our savings.
structured products from Lehman were sold to individual savers such as insurance and risk-free through intermediary banks ensuring that capital was not at risk. is a big scam in USA and also has been done in the rest of the world.
I wonder, the investment banks could not obtain deposits from the general public as commercial banks, but in deeds, through the intermediary banks, have violated that rule and have collected funds from savers by giving simple junk bonds in return with the complicity of the intermediary banks. is not this a serious violation of the law? why it has allowed these products reach individual savers
Comment by George on 24 November 2008:
In May at the urging of Standard Chartered Bank we invested a large portion of our savings in a “European Banking Recovery Note” from SCJL with Lehman Europe as Gaurantors. Standard Chartered said that money was 100% protected, could be traded early, would not have any US financial exposure. Standard Chartered now say money was invested 100% with Lehman US, cannot be traded, is not protected and not their problem that bad / inaccurate information was supplied by them.
Anyone any suggestions how to go after Standard Chartered Bank?
Comment by JP on 24 November 2008:
I bought a $25,000 Lehman Corporate Holdings bond (cost was approximately $22,—) in May 2008 from TD Ameritrade. This was after a CD I had with them had matured and I was looking for a comparable investment. One of their Amerivest representatives referred me to the fixed income department who sold me the bond. I was not told that the company was under a watch or informed that the reason the bond was being sold at a deep discount was that nobody wanted it. This first representative purported to be offering the “free investment consultation” advertised in the company’s flier.
Comment by JP on 24 November 2008:
I bought a $25,000 Corporate Lehman Brothers Holding Co. bond form TD Ameritrade (see above comments). I believe I was a victim of misrepresentation and violation of a fiduciary responsiblity.
Please let me know if there is a class action lawsuit against TD Ameritrade and/or Lehman Brothers that I may join. I have filed a complaint with TD Ameritrade and the SEC. The first was investigated and denied. The second is still under investigation
Comment by Robert on 25 November 2008:
I have 2 Lehman corporate notes totaling $70,000 with present ratings of B3 for Moodys and NR for S&P. Originally they were A1 for Moodys and A+ for S&P. No interest is being paid. Present value is 10 %.
Comment by Bob on 26 November 2008:
Does anyone know if the Federal Government will be sued since they discriminated against a whole class of us who own Lehman stock when they let Lehman fail while bailing everyone else out and their cousins? I’d sure want to participate in that.
Comment by oleta on 27 November 2008:
if I join a class-action law suit against Lehman Brothers and get only 25% of my invesrment, can I claim a loss to IRS for what I need to break even?. Also why is Chapter 11 available in the law to allow a business to take investers money and then use the loop-hole to restart another business and walk away with the investers money and not be forced to make restution by the Federal Government ?
Comment by GINA on 28 November 2008:
I purchased 25k Lehmna bros 3/08 with a 3/09 mature date. was assured this was super safe- now it is worth less// spoke to my stock broker 2day. I can’t even take as a loss since it’s in my retirement account… But I did cash in another retirement policy as I was laid off my job after 14 yrs and needed some money…. Is the goverment going to give me a break on the early retirement taxes!!!! NO!!!!!—– I did hear that there will be a large Class Action Law suit filing next year. Disney had milliions in Lehman bros bonds. So we may re-coop some $. I will believe when I see it
Comment by pat on 2 December 2008:
IS THERE ANYONE OUT THERE WHO FEELS THAT MAYBE WE SOULD SUE THE GOVERNMENT FOR NOT STEPPING IN AND HELPING THEM LIKE THEY HELP EVERYONE ELSE.. I DON,T THINK THATS FAIR YOU LET A COMPANY THE SIZE OF LEHMAN GO OUT AND BAIL EVERYONE ELSE OUT
Comment by Elsie on 12 December 2008:
Yes I also feel we should go after the government for not stepping in, this is crazy that everyone else was bailed out but LB. Why is there no action against the government!!!!!!!!!!
Comment by Jim on 16 December 2008:
Edward Jones placed $45,000 in senior bonds indicating they were
a safe purchase. They knew I was retired and was not interested in any risky investment. This occured in 2004. When I notice I has lost almost $15,000 I called my broker who said not to worry. I called again about 10 days later and I told me my fear were misplaced that even if
they went bankrupt I would still get up to 85% return as he had had a number of discussion with Edward Jones Headquarters. Now my bonds
are worth only a few cents on the dollar.
I was totally misled with their advice.
Comment by susan on 18 December 2008:
Does anyone know if there is a class action suit against Lehman by their former employees? I worked at Lehamn from 5/1998 to 7/2002 and purchased their common stock thru their Employee Stock Purchase Program. I have about 650 shares which totaled about $20,000 at one time. Guess I’m out-of-luck like everyone else.
Comment by peter on 22 December 2008:
RE: Jim’s Dec.16th note on Edward Jones
…you should definitly sue them for misleading you…
Edward Jones is the business name for “Edward D. Jones & Co., L.P.” in both the US and Canada. With 10,000 branches, and 38,ooo employees…and revenues last year of 4.2 billion…they can afford to pay you back. There are many suits against Edward Jones…including mine…
Comment by Barry on 24 December 2008:
On the recomendation of my financial advisor (Edward Jones), I purchase $50,000 of AA rated Lehman Brothers notes in 2006. Now it is worth $700. I contacted a recent law firm that is conducting a class action lawsuit to find out that only recent (mid 2007 and later) investments are to be included in their lawsuit. They explained that (based on prior suits of this type) they could not win if the suit contained investments that were made prior to 2007. So, what do we do now? Half of our retirement is gone and I have gone back to work. We all need to call our senators and congressmen. They are partially responsible for this mess and they need to know we are going to hold them accountable. If this had happened in other countries, the people who lost their savings would be marching on their government buildings and even rioting to demand justice. Why did our government not bail out Lehman Bros. ? Why have they left us without our retirement, etc. We must stop being passive and start making demands. WE MUS HOLD OUR GOVERNMENT OFFICIALS ACCOUNTABLE. WE MUST DEMAND ANWSERS AND JUSTICE.
Comment by Ellis on 25 December 2008:
Purchased about 15K of the J series Preferreds with high Investment level ratings and now I am being told by my broker with AGE/Wachovia that I wont be able to recover anything. I was upset about the complete lack of assitance or guidance being given so I did the search and found this legal action ongoing which I knew absolutely nothing about. Its amazing to me that the Gov bails out AIG and everyone else yet lets Lehmans go into bankruptcy. I am disabled and 65 yrs old & needed this income & bought feeling a company that had been in business for well over 100 yrs and highly rated by Moody’s etc was safe.
Comment by Brenda on 28 December 2008:
Same as all of you. I lost $20,000 on preferred stock ” D “. I was assured by Edward Jones that it was top company grade stock. Kept noticing monthly statement showing the value dropping. I called Edward Jones, expressing my concern. Made 2 appts. with them expressing even more concern. They kept telling to hold on; that it would be alright.
I think that we should join forces in a class action lawsuit, even suing our government if that is what it takes.
Comment by Zhemin on 29 December 2008:
I bought Lehman Brothers HLDG Inc 7.95% NON CUM PERPETUAL PFD SER J. Does anyone know is it the same one as Lehman Preferred Series “J” stock shares. It was also $25 per share and the trade date is 02/05/2008. I bought $30000, now it remains market value $1.20