Lehman Brothers collapse subject of giant lawsuit

The first part of this extremely long  securities fraud complaint filed in U.S. Southern District Court of Texas, reads like a economics history lesson of the recent past.  While the plaintiffs put Lehman Brothers at the center of  fraudulent activity, they also identify plenty of other culprits including accountants Ernst & Young, Merrill Lynch, principals involved at those companies and more.   The main point of the complaint is that all these players had plenty of information back in 2004 that their recklessly, loose lending practices were about to cause the coming collapse and that sunk them under the weight of debt in 2008.  I’m not sure of the legal grounds but it makes compelling reading.

Complaint courtesy Courthousenews

Tags: class action, Ernst & Young, Lawsuit, Lehman Brothers, Linkedin, Merrill Lynch