First Alliance Corporation et.al.

A $50.9 million verdict has been awarded in the class action lawsuit filed against Lehman Brothers, First Alliance Corporation, and MBIA Inc. on behalf of more than 7,500 homeowners. The plaintiffs in the suit, all of whom received high-cost home equity loans from First Alliance between January 1999 and March 2000, claimed that First Alliance defrauded them, and that Lehman Brothers knowingly assisted in fraudulent activities when it provided financing to the lender. (Jun-17-03) [NEW YORK TIMES]