Shareholder sues investment bank Lehman Brothers
US investment bank, Lehman Brothers is being sued by one of its shareholders and accuses the firm of misleading investors over sub-prime loans. The lawsuit states that the senior managements conduct has led to significant financial loss for its shareholders.
The Wall Street bank, last week announced a quarterly loss of more than $2.8 billion as shares have fallen by 60% this year over fears of more bad debts.
In a separate statement Lehman Brothers said that it would need to raise $6bn to remedy its balance sheet. This announcement came just days after the firm had denied it had funding problems.
Lehman Brothers has failed to comment on this current lawsuit, and more lawsuits are expected as the bank has been forced to write-down millions of dollars due to the US housing slump and uncertain credit market.