Two UK pension funds, the Lothian Pension Fund and the Northern Ireland Local Governmental Officers Superannuation Committee, have joined with three US pension funds in filing suit in the US against Lehman Brothers (LEH), alleging Lehman’s involvement in the sub-prime crisis cost them millions of pounds. According to the the UK funds’ lawyer, Robert Roseman, “this is the first case where European institutional investors have brought a claim against banks in the US for violation of the federal securities laws.”
As reported by the Daily Mail, the complaint alleges that Lehman “repeatedly downplayed the risks associated” with owning such debts and “concealed the true extent of the company’s exposure”.
