San Mateo County Can Sue Lehman Brothers Executives
A federal judge says San Mateo County and six other governments can move ahead with their battle to get millions of dollars back from former executives of Lehman Brothers.
The suit claims Lehman executives intentionally misled investors in the months before the firm went bankrupt in 2008.
Attorney Matt Edling represents the governments and an insurance company, who are seeking to recoup some of the $210 million they lost.
"Where Wall Street gets a bailout and these officers and directors get huge, huge golden parachutes, and seemingly there's no ramifications for them at all, it's a breath of fresh air when public entities stand up to them, and we appreciate being able to stand up with them in that fight," Edling said.
Others seeking damages include the city of Auburn, Monterey County and the Contra Costa Water District. Edling said the plaintiffs are the first seeking compensation from individuals, rather than through a bankruptcy settlement.
The suit also alleges Lehman's CEO tried to shield his assets by fraudulently transferrring his $14 million home to his wife for $100.