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$40 Million Settlement Approved in Lehman Brothers Class Action

This is a settlement for the Securities/Stock Fraud lawsuit.

Washington, DC: A federal judge has approved a $40 million settlement in a mortgage-backed securities class action lawsuit against individuals previously affiliated with Lehman Brothers Holding, Inc. (Lehman Brothers"), which in September 2008 filed the largest bankruptcy in US history. The lawsuit is led by Locals 302 and 612 of the International Union of Operating Engineers -- Employers Construction Trust Fund, New Jersey Carpenters Health Fund, and Boilermakers-Blacksmith National Pension Trust.

The final approval by Judge Lewis A. Kaplan of the U.S. District Court, Southern District of New York, ends four years of litigation against individuals previously affiliated with Lehman Brothers, who were charged with filing misleading Offering Documents regarding the credit quality of billions of dollars worth of mortgage pass-through certificates issued in 2006 and 2007.

Under the terms of the settlement, the Lehman Brothers Estate will pay $8.3 million and insurers for the firm's officers and directors will pay the remaining $31.7 million.

Class members have until Aug. 20, 2012, to file their settlement claims. In addition to the lead and named plaintiffs, the Iowa Public Employees' Retirement System and Public Employees' Retirement System of Mississippi intervened in the action on behalf of additional investors. The case is In re Lehman Brothers Mortgage-based Securities Litigation, No. 08-CV-6762.

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Published on Jun-22-12


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