Lehman Brothers Lawsuit to be Filed by California County
San Mateo County, California, has indicated they intend to file a lawsuit against Lehman Brothers’ top officers for making false and misleading statements about the investment bank’s financial position during the weeks leading up to a bankruptcy filing on September 15, 2008.
As a result of the Lehman Brothers collapse, the county lost approximately $150 million from their $2.6 billion investment pool, which has impacted schools, cities and other special districts that contributed to the fund.
The San Mateo County’s Board of Supervisors voted this week in favor of retaining a financial fraud law firm on a contingency fee basis to file the Lehman Brothers lawsuit, which means that there will not be any attorney fees unless they are successful obtaining a recovery from the former executives.
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Learn MoreThe Lehman Brothers bankruptcy, which was the largest filing in U.S. history, was caused by the sub-prime mortgage crisis that the investment back helped create.
While the county has already filed a claim along with other creditors in New York bankruptcy court, seeking its share of the investment bank’s estate, a separate lawsuit should be filed next week against former Lehman Brothers officers Richard Fuld, CEO, Joseph Gregory, COO, Thomas Russo, executive Vice President and chief legal officer, and Erin Callan, former CFO and global controller.
The Lehman Brothers lawsuit will allege that the executives are equally responsible for San Mateo County’s losses for making misleading statements that they relied on prior to the bankruptcy. Indications were made that the bank was adequately capitalized, which is now known to be false.
Last month, a Lehman Brothers class action lawsuit was filed against the former executives and other firms who underwrote a offering of Lehman Preferred Series “J” stock shares in February 2008. The lawsuit alleges that false and misleading statements were made about the financial strength of the investment bank at the time the offering was made, months before the bankruptcy.
A number of individual investors who purchased stock of Lehman structured notes during the months before the bankruptcy based on recommendations of their broker, are also pursuing claims to recover their losses. Lehman Brothers fraud lawyers have indicated that investors may be able to recoup losses caused by overconcentration on investment bank funds, unsuitable investment recommendations and misrepresentations about the financial position of Lehman Brothers.
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10 Comments
TerryJanuary 18, 2012 at 4:23 am
I would like to join the class action suit against LB and Edward Jones, the company that rated the bonds A+ and any other parties involved with this fraud.
LawrenceFebruary 10, 2011 at 4:57 am
I would like to be party to any class action suits against Lehman Brothers, their executives, Bond rating agencies and any other parties involved in this fraud. When A rated bonds are purchased, they ought to be A and not junk overnight. Parties should not be allowed to walk away with my $50,000 waving a bankruptcy flag.
SteveApril 23, 2010 at 6:08 pm
I hope I'm not late to join any suit against these SOBs. I've lost a large piece of my retirement, approx $48,000, as well my job as an R.E. appraiser.
HershelApril 2, 2009 at 9:28 pm
Count me in I lost $20000 to the sleezy bastards.I also blame Edward Jones for not watching out for us when the bond's rating started to fall ,My advisor recomended the bong for my portfolioI
Lehman Brother Lawsuit Being Reviewed By Nevada State Government : AboutLawsuits.comMarch 12, 2009 at 3:03 pm
[...] Lehman Brothers investor lawsuits have been filed on behalf of other government entities, including San Mateo County, California, [...]
JoeFebruary 16, 2009 at 10:01 pm
Just let me know where to sign if anybody has a class action going. I've had my bond longer than some but the thing went from AA rating to junk status overnight. Nobody had time to get out of the thing.
ROBERTJanuary 1, 2009 at 4:56 pm
i would like to join the lawsuit, i got stuck the same way as janice and many others. it was all i had and i believed everything they told me. they claim to be looking out for you, but thats BS
JaniceNovember 20, 2008 at 9:53 pm
I too would like to be a party in any class action suit against LB regarding the $34K Corporate Bonds that I lost due to misrepresentation by the Company. I purchased my notes 04/08/2003 and rating was A+/A1 by Edward Jones Investments. My investment was "Solicited" by Edward Jones as a very good investment with a yiled of 5.50%.
Lehman Brothers Structured Note Investors Pursuing Arbitration to Recover Losses : AboutLawsuits.comNovember 3, 2008 at 5:53 pm
[...] large institutional investors have filed Lehman Brothers lawsuits directly against former executives of the investment bank, seeking to hold them responsible for [...]
MikkiNovember 1, 2008 at 10:18 pm
I'm not a crybaby, I will take my losses on stocks, knew the job was dangerous. On my A rated corporate bonds with Wamu and Lehmans, I'm mad as hell. I lent them the money and they defaulted. Any one of us would be in court if we defaulted. I'm lookilng forward to suing the basturds.