Ex-Lehman Executives, Underwriters Sued by Calpers Over Bonds
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Lehman Brothers Holdings Inc. executives and underwriters were sued by the California Public Employees’ Retirement System over claims they hid Lehman’s exposure to subprime loans when they sold the pension fund about $700 million in bonds.
The retirement system known as Calpers said in a complaint filed yesterday in federal court in San Francisco that the executives and about 34 investment banks made false statements in offering documents for bonds issued from June 2007 to September 2008.