Lehman Brothers Class Action Lawsuit Filed

|

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.

Sports-Betting-Addiction-Lawsuits
Sports-Betting-Addiction-Lawsuits

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.


155 Comments


Jackie
Regarding Lehman Preferred Series “J” shares, was a class action filed and by what law firm?

arvin
i invested funds in Royal Bank of Scotland through a bank in investmen bank in Portugal. The investment was fixed for three years starting from may 2006. After 7 months of investment, the bank transfered my investment into Lehman without my authority. can anybody advice, what should i do? I will appreciate your advice.

Ron
The Friday prior to the announcement of bankruptcy, I held 1/2 million in corporate bonds. The day of the bankruptcy, my broker told me I was broke. Suddenly, a speculater came on the scene, and offered me a “quick” 25 cents on the dollar. Since I needed the funds to live, I took the offer rather than lose it all. Do I have any recourse, or am I dead ?

Kathy
Family member in her mid-80’s lost $95K in Lehman Bond when Edward Jones told her to hold onto it. Other financial advisors I’ve heard of since told their clients to get out in time. Edward Jones sure led everyone astray but, of course, only have excuses. No atty. I’ve spoken to will handle such a “small amt”. One atty. that was researching a potential class action has now suddenly become silent. All the little guy can do is whine and take the punch I guess. Very sad. You’d think that there would be enough of us to justify class action.

Camille
I purchased a substantial amount of Lehman Pref. J stock. I never received any correspondence from any lawfirm regarding a classaction. Nor, did I receive any mail from Lehman s pursuant to their bankruptcy. I think they should all be in jail, starting with Dick Fuld

DAVID
EDWARD JONES,LEHMAN BROS AND PEOPLE IN ARE GOVT. SHOULD HAVE SEEN THIS COMING AND SHOULD HAVE LET US KNOW.I FIND THAT SOMETHING IS GOING ON SINCE NO BALE OUT.BUT EVERYONE ELSE GOT ONE.NO ONE IN ANY OF THESE PLACES HAS BEEN FINED OR JAILED .ALL OF THEM ARE ENJOYING OUR MONEY!! IS THERE ANY HELP OUT THERE FOR THE LITTLE GUY??

Juan
I have 6000 shares and plan to keep them to the end. What else can I loose. At least is more probable to recover that play the lottery.

Jim
My broker, Edward Jones invested $45,000 in Lehman Bonds because he said they had a good return and were safe. I am retired and I stressed I was not interested in risking the principle for a few few extra percentage. When the value fell to $32,000 I said I think you had better sell. Something is going on. He said if you sell you will lose more. It is best to wait because you will probably get all the invested amount back. My second called to him was the same response.. Now they are worth about $1,000 and Edward Jones is pretty mum about the incident. I plan legal action as that is the only recourse.

Daniel
‘@ Mary: you wanted to make money for free. That only happens when somebody gets screwed. No such thing as a free lunch, and all that. It’s just the balance of the world. Homeostasis. What goes up must come down. Etc etc. It’s not wrong that they “could let this happen to investors.” What’s wrong is that anybody ever got rich off of investments to begin with.

Mary
I was invested with Lehman Bros. I had a $20,000.00 note. When I got the note I was told that it was to mature on 03/09/29, and if they were to call it before that date that I would get my full amount of $20,000.00 back and if it was not called until 03/09/29 then I would receive what ever the going rate for the note was at this time. I was receiving a check from them each month at $92.50. Now the note is worth $750.00 if any one could even get this amount. I am very upset about this and I think it is so wrong that they could let this happen to investors who work so very hard for their money and just to have it go away in a single day

B. Frank
To Wright’s comments posted on March 13 thinking we were all told of the risk involved in investing in Lehman Bros……..When we put $80,000.00 into bonds with Lehman we were told not to worry as bond holders are ALWAYS paid back first. So who is lying to us? Lehman or our financial advisor? We took all our money out of CD’s and now have next to nothing. Rough when you are in your 70’s and can’t make that money back in this lifetime!

Donald
I purchased a $50,000. Lehman Brothers Bond MTN ,01/06/2020 # 52517PYH8 on !/01/05. Is there a Class Action Suit ? Do we have to wait for the bankruptcy to be resolved before the suit ?

clyde
what happened to equal protection UNDER THE COMMERCE CLAUSE and the fourteenth amendment to the CONSTITUTION? If a class actiion us commenced, i would like to claim my $100,000.00 corporate bond loss.

Caroline
I am another Edward Jones retard! Was told by broker not to sell my $102K worth of bonds because they would survive!! I didn’t sell and they went bankrupt that weekend! I even have my conversation with the Edward Jones broker on tape. Any class action suits or advise for bondholders??

Ovetta
I lost approx. $35,000.00 that was invested in Lehman. I was not informed that the stock I was buying was Lehman, but a group of stocks. I need to be a part of the class action lawsuit.

W.Wright
You all kill me. You act as if you were mugged. It is a horrible and sad thing the have a stock collapse, but you had to know that there was some risk involved, as there is any time you invest in the market. And why on earth would anyone invest everything they had into a single stock? That is extremely poor investment strategy. Lastly, so you band together and sue Lehman Brothers? Great, now exactly where is THAT money supposed to come from to pay you if you win?

Winnie
I bought Lehman Minibond since 2004. I am frustrated due to the following: (1) When purchasing the product, the risk associated with it is not clearly explained. I am not even aware that there is present of a swap counterparty that in case swap counterparty default, investor will not get back the money. (2) There was no information received from the selling agent or concerned parties about the upgrade or downgrade of the underlying reference entities, swap counterparty and the issuer. If I get the rating or information updates of reference entities, swap counterparty and the issuer, I might sell the mini bond earlier before Lehman Brothers went bankruptcy. (3) In addition, the regulators did not consider that the minibond was a high risk product and never impose any guideline and risk disclosure requirement on the selling of the product. I think the regulators in Hong Kong (HKMA and SFC) should also bear certain responsibilities. They should not allow such complex product be sold through the retail banks in Hong Kong.

Robert
Does anyone know of a class action suit for loss of reverse convertible securities, with loss of $13,000 in less than 3 months? I signed up for one, but the lawyers require a minimum loss of $50,000.

Larry
Add my wife and I to the list of mis-led clients of Edward Jones. We contacted Edward Jones on Thursday, Sept. 11, 2008 regarding the Lehman bonds we had had since 2003 and were told Ed Jones main office was not advising anyone to sell. At that point they were worth approx. 67% of face value (if they could have been sold). I guess the moral is to trust your gut, not the so-called financial advisers. Their only advice is to sell you a product!!! We are conservative investors and the bonds represented our retirement savings. So any info on class action against Ed Jones and Lehman appreciated.

Nate
Please look into the EU. In Luxemburg and Germany, some banks have refunded investors which had bought “Capital Guaranteed” products issued by Lehman. Unless there are consequences for lying and dishonesty, why would anyone buy securities ever again?

mo
Maybe, some of these theives should be prosecuted.

Jim
We too purchased approx. 50K of Lehman Bros. Corporate Bonds, in Mar./08 rated A1, A+. Surely someone would have known at that time the company was iin deep trouble. 401K that I worked hard for down the tube – but hopefully recoup possible.

Alan
Looking for any information regarding class action suits involved with Lehman. Purchased Preferred in 03 for income on broker recommendation

BG
Parent passed from terrible cancer. I inherited Lehman common stock shares worth $28,000 at time of estate settlement. Wanted to sell Lehman and reinvest proceeds into low cost, diversified mutual fund which my other small investments are in. I didn’t get around to it in time what with family matters and legal situation I was dealing with. Lost it all. I have learned a hard lesson not to trust CEO/CFO’s in a-n-y U.S. business. I have learned not to trust anyone in my government which pick and chose who to bailout. I suppose if it had been that sacred cow of Wall Street, the wealthy, and the politically connected – Goldman Sachs, then it would have been bailed out for sure. Anyway, little doubt many political and Wall Street insiders who had exposure to Lehman Brothers investments got their nut out early. Stick with well diversified, low cost mutual funds appropriate to your age and goals people! Don’t ever, ever, ever put your faith in politicians or people whose motivation is heavily influenced upon generating fees and commissions for their personal benefit.

Raffi
I had Lehman Brothers principal protected Stuctured Notes sold through UBS. I want to be sure that my claim against UBS is included in the Class Action Suit, i was assured by my UBS broker time and time again, that these were principal protected structured notes, and i will not lose my principal no matter,i had 130.000.00 of my life savings in it , this is unfair to common peaople like us

GLYNDA
I got a lehman bros corporte bond from my mom when she died, which came from my grandparents money when they died. I bet they spinning in their graves. That bond was bought in 2004 for around $45,000. Now it is worth under $2,000.00. I blame Ed. Jones for some of this, they know what is going on. When the value went down to $29,000 I asked to maybe get out and Ed. jones said no, would be a waste of money. Stay in for long haul, lehman bros. been around for a long time!!! I wish we could take Ed. jones to court also. I am 61 and needed that money for my retirement . I have always worked hard then get some money from family and lose it to a bunch of evil banks. Then the us government bails out the crooks. The bailout should have been for lehman bros. also. to help the poor people who lost money.

Leandro
I also bought preferred stocks (Lehman Preferred Series “J” stock shares issued between February 5, 2008 and September 15, 2008) through Merrill Lynch, on their sound advice that this was a safe investment and now the shares are worthless. I am from Argentina. I think there would be something to do against the US government as they had to control if Lehman was lying on it financial statements and let it to bankrupt, against Merrill Lynch as they recommended these stocks to be bought as a safe investment, the SEC who did not controlled anything, against Lehman as they lied on its financial statements. I would like to be included in any action class against any of the above mentioned institutions.

g david
I am a old guy that invested in these secure bonds. Thank God that I have an old camper that I can live in. GDT

hal
In august 08 my SB agent called to tell me to sell Lehman immediately as something was up. I was on vacation and the next week when I called he said, hold on to it for now. That sounds very suspicious to me. How can I find out if others were givin this information

Terry
I held 15K in corporate bonds. Purchased through Edward Jones. They now value the bond at $200. No one will tell me anything about what we will be able to do. My broker even doesn’t seem to care. I was told to sit tight and see what happens, I already know what happened, I lost all my money!! I too would like to be included in ant class action suit.

John
Has any boby made any headway with this class action against Lehman Brothers, I would like to join the action class action suit, could somebody give me some pointers as I invested a great deal of money back in October 2006

Rosalind
I purchased a corporate bond for $100,000.00 in Lehman Bros, holdings and have not received any money back, Is their any class action suit involving this, I was not even told by my broker what the entity was or the possibility that I may lose the whole amount. It was completely misrepresented by my Lehman advisor.

conrad
I held a $20,000.00 corporate bond with Lehman Bros. ,for which I received 15 cents on the dollar following the bankruptcy filing. I would like to join in any class action suit against Lehman Bros.and it’s executives . I believe that they acted recklessly with investors money and the possibility of fraud is very strong in my evaluation of their personal enrichment.

Gabriel
$70,000.00 of 6.9 % Lehman Bros UK Cap Fd V LP. Current Value $0.00 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?

Sylvia
I owned $100,000. I am an elderly widow and my agent knew I had to be in 100% safe investments. On 2 occasions I asked him to get me out of Lehman and he did not.

Bharat
If any action lawsuit has ever filed or will be filed against Lehman Brothers for common stocks, Please let me know. I want to join in the action lawsuit. Don’t let these cheaters go away without serious actions taken against them.

Joan
I bought LB Holdings Inc. MTNote Bond 7% coupon on 2/1/08 from Steifel Nicholas. I was not informed that it was a risky bond and of course was told that bondholders get paid first. I can’t even get info on what my $10,000 investment might be worth, if anything. I feel mislead and want to recoup my money.

L.J.
Purchaser of “Lehman Brothers Holdings Notes 6%” sold by Edward Jones. Issue was rated as investment grade ,not Edward Jones policy to sell high risk securities. As an unsecured creditor, my 50K investment is almost worthless. My issue is that Jones had a fiduciary responsibility to its customers to monitor the reckless management practices of Lehman and inform them of the very high risk nature that their investment had become, since safety of principal was our prime concern. Even thougth our monthly statement indicated the notes were consistently dropping in value, Jones advised us to “hold on we think they will come out of it” How serious could they have been in regard to follow up due diligence? Edward Jones will never get another dollar of ours to invest!

Layton
I am also an investor in Lehman Brothers bonds sold by Edward Jones. I am a conservative investor and was never told how risky these bonds were. I paid full price and only got 5.37% interest which is not the payback for a risky bond. I never was told that Lehman was investing in high risk mortgage securities in great quantities and I believe that the ratings never got below an A rating. I would be willing to join a class action against Jones for lack of fiduciary duty if it was possible. Jones made money selling Lehman bond junk and left me hanging. They are not getting any more of my business.

Ms Clarke
I am a former employee of Lehman Brother. I was laid off before the company file bankruptcy. One week after they announced they are bankrupt I receive a letter stating that my severance package was discontinued and so was what ever medical they had given to me for the short time. I would like to know if there is a class auction suit going on for employees whose severance was violated.

oleta
On 11/19/2007 Compass Bank Brokerage Department Account Executive in Montgomery, Al. sold me a $20,000.00 Corporate Bond, typed on Confirmation page I received. LEHMAN BROS HLDGS INC MTN INT RATE 7.000 % MATURITY 11/16/2037 DATED 11/14/2007 BOOK ENTRY ONLY CALLABLE 11/16/11 @ 100.000 1st CPN DTE 05/16/08 CPN PMT SEMI ANNUAL ON MAY 16 AND NOV 16 MOODY RATING UNRATED S & P RATING UNRATED FITCH RATING NA. On 12/29/2008 I called Compass Brokerage main office at Birmingham, Al. (1-800-239-1930) The clerk said my bond was underwritten and sold through Lehman Brothers. Since this bond was sold to me in 2007 and Lehman Bros filed for bankruptcy protection Chapter 11 on Sept 15, 2008. Can I be included in this Series “J” stock shares that was issured between Feb 5, 2008 and Sept 15, 2008? I LOANED my money in good faith that I would not lose it.

charles
I purchased lehman bros notes in Dec 2004 i don’t know how they fit into the bankruptcy. I received a form to file from the trustee to fill out but when i tried to get infomation about the notes i was told by edward jones i don,t have to file it as they have their own trustee that is representing me and others involved with edward jones notes. I don,t feel comfortable about this I think i will send one anyway

Zhemin
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

Brenda
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.

Ellis
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.

Barry
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.

peter
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…

susan
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.

Jim
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.

Elsie
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!!!!!!!!!!

This field is for validation purposes and should be left unchanged.

Share Your Comments

This field is hidden when viewing the form
I authorize the above comments be posted on this page
Post Comment
Weekly Digest Opt-In

Want your comments reviewed by a lawyer?

To have an attorney review your comments and contact you about a potential case, provide your contact information below. This will not be published.

NOTE: Providing information for review by an attorney does not form an attorney-client relationship.

MORE TOP STORIES

Rideshare company Lfyt faces a sexual assault lawsuit from a Georgia woman who says a driver exposed himself after she ordered a ride home from a babysitting job.
Lawsuits allege tabletop fire pits are inherently dangerous because they encourage consumers to fuel them with ordinary isopropyl bottles, which can explode in seconds and cause devastating burn injuries.