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Lehman Brothers Holdings Inc LEHMQ Securities Stock Fraud

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Company: Lehman Brothers Holdings Inc
Ticker Symbol: LEHMQ
Class Period: Feb-5-08 to Sep-15-08
Date Filed: Sep-24-08
Lead Plaintiff Deadline: Nov-23-08
Court: U.S. District Court in Manhattan
Allegations:
A lawsuit has been filed by institutional investors Fogel Capital Management against the Chief Executive of Lehman Bros, Richard Fuld, and several other Lehman directors alleging that investors who bought the preferred stock were misled about the risks of investing in Lehman. The suit seeks class-action status.

Defendants include subsidiaries of Bank of America Corp, Citigroup Inc, Merrill Lynch & Co Inc, and several other firms that underwrote a $1.9 billion offering. Lehman itself is not named in the suit because it has bankruptcy protection.

The Lehman Preferred Series "J" stock offering, issued on Feb. 5, was worth $1.9 billion, with nearly 76 million shares sold at $25 each. The suit claims that the stock has dropped in value from $25.55 per share to just 10 cents, resulting in the loss of hundreds of thousands of dollars. The suit also alleges that the prospectus issued in advance of the offering made false and misleading statements, because it did not reveal Lehman's significant exposure to the subprime mortgage market. Nor were investors advised as to Lehman's desperate financial state resulting from deteriorating market conditions and rapidly falling asset values. Nevertheless, the underwriters received approximately $59 million in fees.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Lehman Brothers Holdings Inc LEHMQ Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Lehman Brothers Holdings Inc securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.

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