Shareholder Sues Over Lehman Losses, Disclosures

Law360, New York (June 20, 2008, 12:00 AM EDT) -- A shareholder has filed a proposed class action against Lehman Brothers Holdings Inc. alleging the firm didn't properly disclose the extent of its exposure to the subprime mortgage market.

The lawsuit was filed by the Operative Plasterers and Cement Masons International Associations Local 262 Annuity Fund on Wednesday in the U.S. District Court for the Southern District of New York.

The suit alleged that during the proposed class period the firm was heavily invested in collateralized-debt obligations and subprime mortgage back derivatives. But Lehman Brothers assured...
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