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.
Archive for the ‘Lehman Brothers Bankruptcy’ Category
Here is the language from the Thomas Properties CEO:
“”Through this motion, we are seeking to compel Lehman Brothers to accept and honor its obligation to fund the $100 million revolving credit facility.”
So what’s really going on? Its not like they will get their $100 million from the very bankruptcy investment bank. Looks like Thomas Properties wants out of the deal to make other arrangements but they can’t until the court says, forgetaboutit. Just my guess.