Investors Sue Lehman Unit, Others Over Minibonds

Law360, New York (March 12, 2009, 12:00 AM EDT) -- A group of minibond investors has filed a class action against several financial institutions, including a unit of bankrupt Lehman Brothers Holdings Inc., in an effort to prevent the Lehman unit from seizing more than $1.5 billion worth of minibond collateral currently held by a trustee on behalf of the investors.

In an adversary complaint filed Thursday in the U.S. Bankruptcy Court for the Southern District of New York, the seven plaintiffs asked the court for declaratory and injunctive relief to confirm their title and ownership...
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