Judge Approves $40M Deal In Lehman MBS Class Action

Law360, New York (June 22, 2012, 5:41 PM EDT) -- A federal judge in New York on Friday gave his blessing to a $40 million settlement ending a class action accusing former employees of Lehman Brothers Holdings Inc. of misleading investors regarding the quality of mortgage-backed securities.

Lehman will pay about $8 million toward the settlement, and the remaining $32 million will be picked up by insurers that issued policies to directors and officers of company affiliate Structured Asset Securities Corp.

When Lehman went belly-up in 2008, it dragged down the fortunes of countless investors, not...
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