From CNN Money:
NEW YORK -(Dow Jones)- A shareholder sued Lehman Brothers Holdings Inc. (LEH) and its top management Thursday over the investment bank's disclosures regarding its exposure to the subprime mortgage market.
NEW YORK -(Dow Jones)- A shareholder sued Lehman Brothers Holdings Inc. (LEH) and its top management Thursday over the investment bank's disclosures regarding its exposure to the subprime mortgage market.
The lawsuit, filed in U.S. District Court in Manhattan, alleges the New York investment bank failed to properly disclose to investors its exposure to a meltdown in the subprime mortgage market and the losses it would incur as a result.
"Despite this tumultuous financial climate, Lehman Brothers made repeated false and misleading statements touting the company's sophisticated and conservative risk management policies and assuring investors that it was highly unlikely that the company would suffer significantly as a result of the mortgage and credit market meltdown," the lawsuit said.
The individual defendants include Lehman Chief Executive Richard S. Fuld Jr.; Lehman Chief Financial Officer Christopher M. O'Meara; and Joseph M. Gregory, Lehman's president and chief operating officer.
The lawsuit was filed on behalf of Operative Plasterers and Cement Masons International Association Local 262 Annuity Fund, a Lehman shareholder, by Curtis V. Trinko, a New York lawyer.
The complaint, which claims Lehman shareholders lost tens of billions of dollars in value as a result of the alleged misrepresentations, is seeking class-action status for Lehman shareholders who purchased or acquired its stock between Sept. 13, 2006, and June 6, 2008.
No comments:
Post a Comment