Holders of Lehman stock and debt instruments began receiving claim forms last week as a result of the $417 million dollar settlement reached in early December. Investors of the failed investment bank reached the settlement after six months of negotiation and mediation in their class action securities fraud case against units of Bank of America Corp, Morgan Stanley, Citigroup, UBS and many other underwriters of $31 billion in Lehman debt and equity. Like Lehman Brothers, many of those underwrites no longer exist, leaving the remaining firms to pay the bill. The Class Acton suit accused the underwrites of failing to investigate and ensure the accuracy of statements made in the course of promoting and selling the securities. The $417 million is in addition to another $90 million offered by Lehman’s former directors to settle a suit against them concerning their alleged role in the matter. Both settlements were granted court approval earlier this year.
Those investors currently in litigation against brokerage firms regarding the marketing and sale of Lehman equity and debt securities should contact their attorney to determine how inclusion in these settlements may effect their rights to pursue their individual claims in arbitration or court. If you received a claim form and are unsure of your rights, please contact our office for a free consultation.