Former Lehman Clients Ask For $190M In ARS Suit

Law360, New York (June 10, 2009, 12:00 AM EDT) -- Western Digital Corp. and Ceradyne Inc., two California companies that sank millions into auction rate securities on the advice of Lehman Brothers Holdings Inc., are trying to make a $191 million example of the now-defunct investment firm for allegedly misleading investors into buying into an ARS market Lehman knew was on the verge of collapse.

Western Digital and Ceradyne each filed adversary suits on Tuesday in the U.S. Bankruptcy Court for the Southern District of New York alleging Lehman operated a massive scheme to conceal critical...
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