Lehman Brothers Class Action Lawsuit Filed

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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.

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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.

Tags: Class Action, Financial Fraud, Lehman Brothers
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155 Comments

Rita
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.
Bob
Does anyone know of a lawsuit including Lehman’s common shares? I have 1000 shares. When $28,000 turn into $200, it hurts … .
Louis
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.
Marianne
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.
Dick Fuld
I deserve to go to jail.
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