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In re Lehman Brothers Equity/Debt Securities Litigation, Case No. 08-CV-5523 (LAK) Dear Madam/Sir: You are being sent the two enclosed Notices because you may be entitled to share in either or both.

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The Action is a class action lawsuit brought by investors alleging that they suffered damages as a result of material misrepresentations and omissions concerning certain aspects of Lehman's financial results and operations in violation of the federal securities laws by, among others, defendant Ernst & Young LLP.

As such, Lehman's leverage was tremendous, exceeding 30%, double the maximum requirements of US regulation set at 15%. To recover the confidence of the regulators, rating agencies and financial markets, Lehman started deleveraging.

The short answer was that Lehman was illiquid and lacked sufficient collateral to borrow enough from the Fed or to renew the repurchase agreement contracts (repos) to avert collapse. Surprisingly, just before filing for bankruptcy, Lehman was given investment-grade ratings by the big three independent rating agencies.

While the Lehman Brothers bankruptcy did not cause the Great Recession or even the subprime mortgage crisis, its downfall triggered a massive selloff in the global markets.

Fifteen years ago, the world witnessed the largest commercial collapse in history. The financial giant Lehman Brothers filed for bankruptcy on Sept. 15, 2008, with $613 billion in debt, putting thousands of employees out of work and sending the already recessionary economy into a tailspin.

In a typical securities class action, one or more shareholders who held or currently hold stock in a particular company will commence a class action by filing a complaint (most often in federal court). More often than not, multiple lawsuits are filed by multiple law firms, who each have their own plaintiff.

Accounting fraud: they used a trick called Repo 105 to remove a significant amount of debt off their books, just in time for the quarterly reports. The accounting fraud was so big, that Lehman's CFO in 2007 refused to sign off on the financial statements, but instead resigned.

The settlement would permit another $1.496 billion to be paid to creditors and a separate $76 million deposit. The brokerage unit of Lehman Brothers completed its liquidation process on September 28, 2022, after paying out over $115 billion to its customers and creditors over the course of 14 years.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232