BNY Investors Sue Over $35M Lehman Loss

Law360, New York (September 14, 2011, 3:20 PM EDT) -- Investors sued Bank of New York Mellon Corp. on Tuesday in a putative class action accusing the bank of lending $35 million of their assets to Lehman Brothers Holding Inc. and leaving the loans drastically undersecured, even as the bank sought to minimize its own exposure to the doomed firm.

The suit, filed in New York federal court by a pair of Detroit public pension funds, accuses the bank of luring the funds into its securities lending program, which purported to turn investors' money around into...
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