LEHMAN BROTHERS SUED
Two New Jersey residents have filed an arbitration claim against Lehman Brothers holdings for $1.14 billion. The claim alleges that the firm placed the investors savings into “investments that have become hard to sell.” The securities held were auction-rate securities, yet another form of security that has been racked by the subprime mortgage market and ensuing credit crunch.
The Lehman Brother’s contingent “disputed the [claimant’s] accusation. ‘These clients had a professional investment consultant with whom we dealt… we believe we have meritorious defenses to this claim.’” In other words, the claimants sought securities over exposed in the subprime market.
As the true extent of the subprime debt crisis plays out, it is safe to expect many more situations where damages have been incurred.
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http://www.bloomberg.com/apps/news?pid=20601087&sid=aMvCcBjj9w9M&refer=home#
