Lehman Insiders Hoodwinked Real Estate Investors: Suit

Law360, New York (May 27, 2011, 9:14 PM EDT) -- A group of investors sued former Lehman Brothers Holdings Inc. insiders on Friday in New York state court, claiming the bankrupt firm used $640 million of their money to unload its overvalued properties during the real estate collapse.

Investment vehicle Lehman Brothers Real Estate Partners III paid inflated prices for properties from Lehman even though market turmoil had substantially reduced their value, Virginia resident Barbara Fried and other investors contend. Insiders ran the alleged fraud to try to clean up the firm's financial statements, the plaintiffs...
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