New Jersey sues Lehman officials for fraud

[Robbien]

Source: Reuters



* New Jersey sues Lehman officials to recover pension loss

* New Jersey charges chairman and board misstated risks

* New Jersey sues accountants Ernst & Young over oversight (Adds details about lawsuit, Lehman spokeswoman's response in new paragraphs 3-10)

NEW YORK, March 17 (Reuters) - New Jersey on Tuesday sued Lehman Brothers executives and directors for "fraud and misrepresentation," Gov. Jon Corzine said, seeking to recover the $118 million the state pension funds lost.

New Jersey's Division of Investment bought $182 million of Lehman securities in April and June 2008. The move captured widespread attention because it was unusual for a U.S. state pension fund to use the same strategy as sovereign wealth funds, hedge funds and private equity groups.

. . .

The bankruptcy means the state cannot now sue the company, but New Jersey said it sued nine top executives, including former Chairman Richard Fuld, and nine board members, including John Akers and Henry Kaufman. Lehman paid each board member $325,000 to $397,000 in fiscal 2007, the statement said, faulting them for acting as a "rubber stamp" for executives.



Read more: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN1729731420090317

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[Laelth]

1. Good. Somebody needs to do something to hold these people accountable. n/t

:dem:

-Laelth

[Igel]

2. And who's going to hold their accomplices accountable?

"New Jersey's Division of Investment bought $182 million of Lehman securities in April and June 2008. The move captured widespread attention because it was unusual for a U.S. state pension fund to use the same strategy as sovereign wealth funds, hedge funds and private equity groups."

The state pension fund was stupid. Now they're saying they were smart and wise, but duped.

[Robbien]

3. Huh?

What accomplices? The State was playing follow the leader behind the funds. The funds were not in cahoots with the State.

[flyarm]

4. Fuuny eh??those contracts can be broken..huh??? the contracts with the workers who

worked their entire lives for those pensions..what i have brought up over and over here on du and have been accused of being a repub!! seriously!!