Brothers bring $1.14B claim against Lehman

Lehman is facing a $1.14 billion claim from two New Jersey brothers, who argue that the firm mishandled their fortune by steering $286 million into hard-to-sell investments, Bloomberg reported.

Lehman Brothers Holdings Inc. is facing a $1.14 billion claim from two New Jersey brothers, who argue that the firm mishandled their fortune by steering $286 million into hard-to-sell investments, Bloomberg reported.
According to an arbitration complaint filed yesterday by Brian and Basil Maher with the Financial Industry Regulatory Authority, the brothers sold their family’s marine container company last year and argue that the New York-based firm ignored their requests to place the proceeds in short-term, liquid assets, according to Bloomberg.
The Maher brothers say Lehman instead placed the money into so-called auction-rate securities, which have been smacked by the credit market turmoil.
Lehman officials vehemently denied the Maher brother’s claim.
“These clients had a professional investment consultant with whom we dealt,” said Lehman spokesman Randall Whitestone to Bloomberg.
`We believe we have meritorious defenses to this claim.”
The Mahers’ complaint also names six of the New York-based firm’s employees as defendants and is requesting that Lehman buy the $286 million in illiquid debt securities they claim was lost as well as pay three times that amount in punitive damages, legal costs and interest.