Based upon the relatively "low risk" investment portfolio, prior passive approval of the 12 school districts, and the authority of the county agency (Treasurer's office)-- from my view as a citizen and having participated the securities industry, this is a lawsuit going nowhere.
San Mateo Times/Joshua Melvin, 11/14/11. "A judge has dismiss
"This is a temporary victory, in my view," Neuman said of the dismissal. San Mateo County lost $155 million, including the $20 million from 12 school districts, it had invested with Lehman Bros. The company filed for bankruptcy in September 2008. The county investment pool also has a lawsuit pending against the Lehman estate in hopes of getting some of that money back.
The 12 school districts alleged in their suit that then-treasurer Lee Buffington and the county made investments in Lehman Bros. that violated their own policies. The schools claimed the loss was due to negligence. Michael Celio, who represents San Mateo County, said that's plain wrong. He expects the appeal, but he said it's a waste of more taxpayer money. He added that the schools were fully informed about the investments. "They were happy as long as they were making money," he said. "As soon as the investments went bad they took action." Neuman said the basis of his appeal is that the county did not invest with the skill and care the "They are not immune from liability for imprudently investing the money of the school districts," Neuman said.aw requires. He cited government code section 56300.3, which requires government agencies to act with prudence and diligence."
Posted by Kathy Meeh