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Ex-Lehman Execs Hid Subprime Woes, CalPERS Says

Law360 (February 8, 2011, 2:34 PM EST) -- The California Public Employees' Retirement System has hit former Lehman Brothers Holdings Inc. executives with a suit accusing them of hiding the collapsed investment firm's exposure to subprime mortgages when they sold the retirement fund about $700 million in bonds.

In a complaint filed Tuesday in the U.S. District Court for the Northern District of California, CalPERS claimed that the executives repeatedly reassured investors that they were mitigating Lehman's real estate related risks, when, in fact, they were using accounting tricks to hide the company's deficiencies....
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