San Mateo County Calif., has decided to sue executives at the bankrupt investment firm Lehman Brothers Holdings Inc., claiming they misled investors about the firm’s financial health.
The Board of Supervisors agreed to retain the Burlingame, Calif., law firm Cotchett Pitre & McCarthy to move forward with the suit.
The county’s $2.6 billion investment fund lost roughly $150 million when Lehman Brothers filed for bankruptcy.
County Treasurer Lee Buffington says Lehman executives assured investors they had plenty of money just weeks before going bankrupt.
County officials say they have already filed a claim in bankruptcy court for their portion of Lehman’s estate.
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