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.
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. Read some of the painful messages to this article:
Comment by Marianne on 1 October 2008:
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.
Comment by Louis on 1 October 2008:
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.
Comment by Bob on 2 October 2008:
Does anyone know of a lawsuit including Lehman’s common shares? I have 1000 shares. When $28,000 turn into $200, it hurts … .
Comment by Rita on 3 October 2008:
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.
Comment by leslie on 6 October 2008:
I too would like to know if anyone knows of a lawsuit for share holders who had common shock?
Comment by celia on 7 October 2008:
Does anyone know if bonds are included in this class action or is there a different class action againts LB …also, is there any blog o list of people involved ?
Comment by GWBMAD on 7 October 2008:
On recommendation of Millenium BCP in Portugal I invested a high amount in Lehman bonds (ISIN) XS0301813522, with the argument that this was a safe investment without an risk. I am now seeking for law firms who file for class action suits. Any advice?
Comment by Pam on 7 October 2008:
I too had invested in Lehman stock. It went from $32000 down to $1600 when I cashed out. I have another 100 shares worth a whopping $14. I have suffered greatly as others and wonder why Lehman was not bailed out as others. What is the government going to do for all of our losses on stock devaluation?
Comment by jh christie on 8 October 2008:
how about the Lehman Bros Cap Trust V PFD Secs Ser M 6% – are they included in any class action?
Comment by Paul on 10 October 2008:
There is evidence outside the U.S. that puts the Lehman Brothers problem and its link to GS [Goldman Sachs] into a completely different perspective. It could thus help Lehman Shareholders recover their losses, particularly those contempla\ting a lawsuit. I’m American and an oversea victim of the Wall Street Collapse. In my situation I can only issue a Warrant of Arrest against the Secretary of the Treasury.
Comment by Christina on 10 October 2008:
WHen I went to buy stocks about a month before they went bankrupt people were buying. It was $16.00 a share.How can they reccomend a purchase right before a crash. Someone is lying. I am a single parent and this was my sons money.
Comment by fred on 11 October 2008:
IN DECEMBER I BOUGHT $25,000. WORTH OF LEMAN BROS BONDS FROM FIDELITY INVESTMENTS. THE BONDS WERE RATED A BY MOODYS AND THE S&P RATING COMPANIES. SEEMS TO ME THEY EITHER LIED, OR ARE INCOMPETANT. I AM CURRENTLYR ALL OF IN THE PROCESS OF MOVING MY ACCOUNT FROM FIDELITY.
Comment by Eric on 12 October 2008:
add me to the list of potential investors suing: $17,000,000 Lehman Bros. Holdings notes: I put in $100K in Jan ‘08, today said to be worth $10K.
Comment by James on 15 October 2008:
I too bought Lehman on what I thought was sound advice, albeit, it was only $6000.00 worth of stock ) worthless now. Does anyone know of a class action suit. Why not take Dick Fuld’s Millions and pay us back!
Comment by Elsie on 17 October 2008:
To all of the people who have posted comments on this site, I too am very intrested in joing a class action lawsuit against LB. I am an eldery women who needed the intrest of my Lehman Brothers Corporate Bonds to live on and pay all of my bills, I just cant believe what has happed, I am in a state of shock and am looking for any advise possible to take serious action against LB.
Comment by andrew on 20 October 2008:
Yes i also bought prefered stocks ( lehman bros) in the amount of 50,000.00 thru a financial services firm, on their sound advice that this was a safe investment and now the shares are worthless. Someone is lying or very incompetent. I am retired and was depending on the interest . I am now seeking law firms who file for class action suits.
Comment by Jerry on 20 October 2008:
Does anyone know if there is any action being taken against the CEO who cashed in options worth 90Million Dollars just prior to the bankruptcy?.. does this not constitute insider trading?..
Does anyone know if there is any action is being taking with regard to the common stock?.. any information is GREATLY appreciated!.. like Marianne, i too am an elderly person who hat everything into Lehman.. \
Comment by James on 20 October 2008:
I put my 92 year old mothers life savings in AAbonds. Thinking I was investing in a sound investment. I want other people to join me in a Class action suite.Please respond if you wish to join me.We can’t let these bastards get away with our money.
Comment by elise on 21 October 2008:
i would like to know how i can get my money back with interest.
where is it written that CEO’s need to make so much money , money that is taken by shareholders…..
CEO’s make millions of dollars, have estates, cars, with our monies.. i want my money back !!
Comment by lee ann on 21 October 2008:
I too was advised to buy Bonds in this good rated company Lehman bros. Yes …someone sure made alot of money off all of us. I can not believe I lost all my retirement savings. What will we do now? This is not right for all those brokers to advise us to buy from a company that was in trouble…….I am sick sick sick !!!!!! how can you do this to people? You stole our money.
Comment by Angela on 21 October 2008:
Does anyone know if Preferred C Class shares fall in the same category as the J Class? I was advised to buy in April 08 and have lost over 50K. I would be very interested in being part of a class action suit with other holders of C Class shares.
Comment by milan on 22 October 2008:
I would like to pursue a lawsuit of Lehman management. I have short sold stock in May, Lehman claim was fraudulent and I have lost over $42K.
Comment by Gina on 24 October 2008:
Can the terminated employees of Lehman Brothers, who was let go a week before the bankruptcy filing, be allowed to file a lawsuit against Dick Fuld and LBHI? We were promised to be paid a substantial severance package including medical benefits until June, 2009. Within a week of signing the separation contract, a letter was sent to our homes informing us that LBHI and Barclays would not honor agreement. So now, with my savings exhausted and no salary to speak of, I am forced to apply for Medicaid and Food Stamps to survive.
Comment by lawrence on 24 October 2008:
I would like to be included in any class action law suit against Lehman Brothers. i purchased corporate bonds in the amt. of approx. $100,000. I am 67 years old and retired – there goes 1/3 of my retirement. HELP!
Comment by Mel on 24 October 2008:
Why just file against Series J? I have Preferred Series K 6.375% and the Preferred 6 %. I was told they were investment grade A rated.
Comment by J.Angelillio on 26 October 2008:
I lost am anothe casulaty when Lehman Bros. went belly up….I had preffered stock, in my retirement account. I want justice……this really hurts for me and fellow investors when you believed the company was sound from Moody’s and our respected advisers…If there isn’t alwsuit in process for preffered…let band together and crerate one…..
Comment by EDWARD on 26 October 2008:
i purchaseD 10000$ OF LEHMAN BROS HOLDINGS 6.5 5 PFDS ON OCT 18 2007. UBS BROKER SAID IT WAS A RATED.. THEY DIDNT DO DUE DILIGENCE IN SELLING THIS TO ME.. NOW WORTHLESS.. I AM 90 AND NEED THESE FUNDS .. WHAT CLASS ACTIONS ARE BEING PU RSUED.. BY THE TIME THEY ARE SETTLED.. I WILL BE LONG GONE..
Comment by ddavid on 27 October 2008:
My broker said Lehman was a good investment rated A+ or better. Never even received an interest check on my investment. I lost 60,000 and I’m 68 years old. It just devastated me. I too would like to know who has class action going. Actually the RATING AGENCIES should be sued. Had they rated the bonds properly, few would have bought the bonds.
Comment by Ibrahim on 30 October 2008:
Standard Chartered Bank, Dubai also gave me misleading information about lehman perptual 6.9% XS0301813522 only couple of months before the bankruptcy while they gave me a term sheet showing INvestment grade for this particular bond and convinced me to invest nearly leveraged- US$ 300,000 in this bond, now they claim the leverage amount, can any one advise what can i do? this bond is issued by Lehman Uk Cap FD, is there any news about the liquidation and any amount could be recovered?
Pingback by Lehman Brothers Lawsuit to be Filed by California County : AboutLawsuits.com on 30 October 2008:
[...] month, a Lehman Brothers class action lawsuit was filed against the former executives and other firms who underwrote a offering of Lehman [...]
Comment by Tony D. on 31 October 2008:
My broker Smith Barney purchased 18,000 .00 worth of Leman Brothers common stock said it was a good investment great firm. Ha!!! I’m now out 18,000.00. I guess that’s how Smith Barney earns money they steal yours. If ever a class action suit please get in touch with me I’ll lead the charge to the court house.
Comment by Jim on 31 October 2008:
I invested in preferred notes several years ago. Would have sold my holding is I had known of Lehman Bros financial problems. Invested $15,000. now worth less that $1.
Comment by mike on 3 November 2008:
had 600 shares of preferred stock, which is now worthless. it was part of my retirement portfolio,which has been hard hit by the collapse. i’ll join a class action suit to get my money back and justice.
Comment by camille on 3 November 2008:
I purchased $50,000 worth of Lehman Preferred Series “J”in February, 2008 and 6 months later they were worthless. I would like to join this class action lawsuit. Incidentally, In March, 2008, I understand Dick Fuld was awarded a bonus worth millions of dollars . Is there something wrong with this picture?
Comment by James on 3 November 2008:
I had 50 k invested in their preferred stock and bonds bought through another financial firm and certainly thought it to be investment grade. I hope fuld and others go to jail (they won’t) but i would rather have my monet back.
Comment by Carl on 7 November 2008:
I too purchased a $50,000 Lehman Brothers Holdings bond in December 04. This was sold as a safe investment that would pay 5.6%. I began to question my investment company when I noticed a dropping
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