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Australian Court Clears Way For Lehman Lawsuits

MELBOURNE, Australia – (AP) Australian investors in Lehman Brothers and affiliated companies are free to pursue more than 600 million Australian dollars ($551 million) in damages after the High Court on Tuesday dismissed two appeals. The decision upheld a Federal Court decision that found a settlement...

Lehman Brothers Estate Sues JPMorgan Chase

NEW YORK — (AP) The estate of Lehman Brothers Holdings Inc. claims that JPMorgan Chase & Co. helped drive Lehman into bankruptcy by forcing it to give up billions of dollars in cash reserves that it otherwise could have used to stay afloat. The Lehman estate alleges in a lawsuit filed Wednesday...

The N.Y. Attorney General’s Lawsuit Against E&Y: Substance vs. Form

Lehman Brothers' auditor Ernst & Young was named as a defendant in a Martin Act securities fraud suit by the New York Attorney General. The complaint claims that for years the giant accounting firm issued clean audit opinions on Lehman's financial statements while knowing that they were false...

Some Questions About the N.Y. AG's Lehman-Related Complaint Against E&Y

New York Attorney General Andrew Cuomo's December 21, 2010 filing of a civil fraud lawsuit against Ernst & Young in connection with the audit firm's services to Lehman Brothers has captured headlines in business pages around the world. The complaint itself, which can be found here , raises...

Lehman Brothers Trustee Sues Citibank For $1.3 Billion

NEW YORK - (AP) The trustee overseeing the bankruptcy of Lehman Brothers' brokerage unit is suing Citibank for more than $1.3 billion. Trustee James Giddens said in a lawsuit filed Friday in Manhattan that he seeks to recover a $1 billion deposit for foreign exchange settlement services and more...

2nd Circuit: Rating Agencies Can't Be Held Liable In Securities Litigation As '33 Act Underwriters

In a May 11, 2011 opinion ( here ), a three-judge panel of the Second Circuit affirmed the dismissal of rating agency defendants in litigation filed under the Securities Act of 1933 and involving mortgage-related securities issues by Lehman Brothers and IndyMac and the Residential Asset Securitization...

Plaintiffs' 'Core' Allegations Survive in Lehman Brothers Securities Litigation

In a detailed 106-page opinion dated July 27, 2011 ( here ), Southern District of New York Judge Lewis Kaplan granted in part and denied in part the defendants' motions to dismiss in the consolidated Lehman Brothers Securities Litigation. Though Judge Kaplan knocked out certain of the plaintiffs'...

Ernst & Young Lehman Litigation: It's No Victory If You're Going To Trial

It wasn't even a verdict. Just a decision by New York Federal Court Judge Lewis Kaplan in one Lehman failure cases Ernst & Young is fighting. A decision to allow substantially all of the allegations against Lehman executives and at least one of the allegations against Ernst & Young to move...

Judge Rules Lehman And Ernst & Young Litigation Can Proceed

According to an article in the Wall Street Journal : A lawsuit contending that Lehman Brothers Holdings Inc.'s former officials, underwriters and auditors are responsible for investor losses should go forward for the most part, a federal judge ruled Wednesday. According to the article, the...

14 Former Lehman Brothers Execs Agree To Settle Securities Class Action For $90 Million

In a development that undoubtedly will attract comment and controversy, fourteen former Lehman Brothers executives--including former Lehman Chairman and CEO Dick Fuld --have reached an agreement to settle the consolidated securities class action litigation that has been filed against them for $90 million...

$507 Million In Settlements Reached With Lehman Officers, Directors, Underwriters

NEW YORK - (Mealey's) In a motion made available on Dec. 5, lead plaintiffs in a securities class action lawsuit against Lehman Brothers Holdings Inc., certain of its formers officers and directors and others asked a federal judge in New York to approve two settlements totaling $507 million to settle...

Lehman Brothers Agrees To $1 Billion Settlement With Bermuda Affiliates

NEW YORK - (Mealey's) Lehman Brothers Holding Co. Inc. on Feb. 28 agreed to a $1 billion settlement that resolves $2.3 billion in claims brought by the closed bank's affiliates based in Bermuda, according to a brief the bank filed in a New York bankruptcy court ( In re: Lehman Brothers Holding...

JPMorgan Settles Lawsuit Over Alleged Misuse Of Lehman Funds For $20 Million

By Michael J. Lello WASHINGTON, D.C. - (Mealey's) JPMorgan Chase Bank NA on April 3 agreed to pay $20 million to settle a U.S. Commodity Futures Trading Commission (CFTC) suit alleging that it mishandled Lehman Brothers Inc. customers' funds during Lehman's collapse ( In re: JPMorgan Chase...

SEC Loses High Profile Enforcement Action Arising From Market Crisis Case

The collapse of the Primary Reserve Fund in 2008 in the wake of the Lehman Brothers bankruptcy was one of the key events of the market crisis. Quickly the federal government stepped forward and guaranteed the money funds to which many had entrusted their savings, considering the investment vehicles as...

UBS To Pay $120 Million To Settle Claims Over Lehman Brothers Securities Losses

NEW YORK — (Mealey’s) In a New York federal court, UBS Financial Services Inc. agreed on Aug 8 to pay $120 million to settle federal securities law claims that it misrepresented the investment quality of certain Lehman Brothers securities it sold before Lehman Brothers filed for bankruptcy...