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Investors beef up Lehman case
31.10.08
Angry Lehman Brothers investors have added new claims that the firm misled them in the run-up to its collapse.
A group of public pension funds has now amassed information from more than 20 former employees of Lehman which, it says, proves the firm did not adequately disclose the risks in its property investments.
They include a former Lehman vice president who is quoted as saying employees were "sceptical" of Lehman's statements that it was well-positioned to withstand a housing downturn.
The defendants are yet to file court documents in reply to the charges.
"Lehman assured investors, falsely, that its exposure to the real estate meltdown was well contained, due, in part, to its claimed excellence in 'hedging' against losses in that sector," the court filing says.
