Ex-Lehman CFOs named in sub-prime suit
Suit alleges bank's reporting of sub-prime exposures lost shareholders billions
Former Lehman Brothers CFOs Chris O’Meara and Erin Callan have been named in
a lawsuit alleging the bank failed to properly disclose its exposure to the
meltdown in subprime.
The defendants in the suit also include chief executive Richard Fuld and
Joseph Gregory, Lehman’s president and COO, as well as the bank itself, reports
‘Despite this tumultuous financial climate, Lehman Brothers made repeated
false and misleading statements touting the company’s sophisticated and
conservative risk management policies and assuring investors that it was highly
unlikely that the company would suffer significantly as a result of the mortgage
and credit market meltdown,’ the lawsuit said
The complaint claims Lehman shareholders lost tens of billions of dollars in
value as a result of the alleged misrepresentations.