Friday, May 29, 2015

Lehman bankruptcy settlement with San Mateo County

"The County of San Mateo and other California public entities reached a $6.5 million settlement with Lehman Brothers auditors Ernst & Young, successfully concluding its legal efforts to recoup its losses from the 2008 Lehman bankruptcy.
Image result for knowingly misled investors picture
Thanks for waiting for your
money, 'cause I'm out of here.

Image result for Monopoly picture
Sorry, but "greed was good" for me.
.... Steve Fuentes, associate superintendent of business services, Jefferson Union High School District, said, "We are getting repaid 43 cents on the dollar. We were paid back $1.1 million over the last few years, but we lost $2.5 million in 2009." Pacifica Tribune, 5/27/15. "County of San Mateo settles with Lehman Brothers auditors."

 ....  "Lehman's failure spelled a $155 million loss to the County's Investment Pool which held funds for the county, school districts, special districts, and other public agencies in more than 1,050 different accounts. The County's Investment Pool ultimately recovered more than $71 million -- or 46 percent of losses -- through bankruptcy proceedings and litigation against Lehman Brothers' directors and officers and Lehman's auditors, Ernst & Young."  Half Moon Bay Review/Staff, 5/21/15, "County settles Lehman claim." 

...." In November 2013, county officials had announced a $5.2 million settlement with the former officers and directors of Lehman Brothers through a lawsuit filed after the Wall Street firm’s bankruptcy in the midst of the nation’s economic collapse leeched more than $155 million from the local investment pool. Unlike bankruptcy proceedings, the county’s litigation targeted the personal assets of specific executives like former CEO Richard Fuld, holding them responsible for the firm’s financial failure. That lawsuit claimed Lehman executives knowingly misled investors leading up to its bankruptcy and used accounting gimmicks to keep entities from selling before the entire firm collapsed in September 2008."  The Daily Journal (San Mateo), Staff, 5/19/15. "County reaches $6.5M settlement with Lehman Brothers auditors."

Note graphic/photograph from "snowball" on Histomat: adventures in historical materialism blog.  Running from MCS Healthcare Public Relations.

Posted by Kathy Meeh

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