Fremont sues Lehman over investments

March 26, 2009 1:52:25 PM PDT
The city of Fremont is suing former employees of the Lehman Brothers investment bank, in an effort to get back more than $4 million the city invested.

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The money was lost when Lehman entered into one of the largest corporate bankruptcies in U.S. history.

The city is suing the investment bank's top executives, accountants and underwriters, saying they released misleading financial statements, and failed to disclose the company's severe exposure to subprime mortgage debt.

More than 100 public agencies lost a combined $2 billion when Lehman went bankrupt.

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