Lehman Brothers Lawsuit
Lehman Brothers Lawsuit Filed
A class action lawsuit against Lehman Brothers was filed recently on behalf of investors who had purchased Lehman Preferred Series “J” stock shares that were issued between February 5th 2008 and September 15th of 2008.
The Lehman Brothers lawsuit was filed against several Lehman executives, as well as firms that underwrote the offering. The lawsuit claims that misleading and false statements were made to investors about regarding the financial strength of the investment bank.
Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008, which caused substantial losses for investors. The institution's collapse actually began in 2007 shortly after the mortgage market crisis unfolded, as Lehman had invested heavily in subprime mortgages.
The Lehman Brothers lawsuit 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 of 2008, over 76 million of the Lehman Brother preferred shares were sold at around $25 each, a $1.9 billion offering. Shortly after the collapse of Lehman Brothers, the shares have plummeted to under 10 cents, meaning huge losses for investors.
The securities fraud attorneys working the Lehman Brothers lawsuit seek to regain losses on behalf of the investors that purchased the Lehman Preferred Series “J” stock shares.
