Lehman Brothers Fraud Lawyers

Austin Kirk

By Austin Kirk
Posted October 30, 2008


The financial fraud lawyers at Saiontz & Kirk, P.A. are investigating potential Lehman Brothers lawsuits and stock broker arbitration claims for individuals who lost over $50,000.00 as a result of investments in Lehman Brothers, which filed for bankruptcy on September 15, 2008.


Investors who purchased Lehman Brothers principal protected notes, also known as Lehman structure notes, or Lehman Brothers stock based on the recommendations of their broker may be entitled to recover their investment losses.


Lehman Brothers structured notes were sold by many brokers to investors as a safe and conservative investment which “guaranteed” that investors would at least get back their initial investment. However, the Lehman protected notes are now essentially worthless following the investment bank’s bankruptcy filing.

During the months leading up to the bankruptcy filing on September 15, 2008, many brokers continued to recommend these financial instruments, even though they knew or should have known that Lehman Brothers’ financial position was weak and compromised by the sub-prime mortgage market collapse, which Lehman helped create.

The Lehman structured notes were being sold to generate revenue to make up for the underperformance of securities related to the subprime mortgage crisis. Many of the same brokerage firms who had stock brokers recommending these investments as safe and conservative, were selling Lehman structured notes for the same reasons.


For individual investors who purchased shares of Lehman Brothers stock since January 2008 as part of a solicited trade, or with the advise and recommendations of their stock broker, potential recoveries may be available through an arbitration claim. Cases are not being investigated for self-directed trades, or those made based only on the decisions and research of the investor. For those who purchased shares prior to 2008, potential cases are being evaluated if the broker advised to hold the security within 90 days of the bankruptcy filing.

In many cases, the recommendations and actions of stock brokers have violated their fiduciary responsibility to ensure that the Lehman Brothers investments were in line with the objectives and risk tolerance of their clients. Financial recovery may be available through a FINRA arbitration claim for investors who lost money as a result of unsuitable Lehman Brothers stock purchases, or overconcentration in the investment bank securities.


A number of Lehman Brothers lawsuits and Lehman Brothers class action suits have been filed on behalf of large investors and those who purchased Lehman Preferred Series shares as part of offerings during the months leading up to the bankruptcy. The Lehman Brothers lawsuits allege that false and misleading statements were made about the lack of capitalization at the bank and the impact of the sub-prime mortgage crisis.


The Lehman Brothers fraud lawyers at Saiontz & Kirk, P.A. are providing claim evaluations for investors who lost in excess of $50,000.00 to evaluate whether the circumstances surrounding the loss may allow the investor to obtain a financial recovery. To review a potential claim, request a free consultation and claim evaluation.

17 Comments • Add Your Comments

  • Jeffrey says:

    So those of us who were hoodwinked into believeing these were safe investements and invested less than $50,000 don’t warrant represzentation? I lost $20,000, and for someone of my means, it’s enough to provoke thoughts of suicide.

    Posted on November 20, 2008 at 5:42 pm

  • Oleta says:

    My broker bought me $20,000. Lehman Bros Corp bond on 11/23/07. She said her Compass Bank or Brokerage Dept cannot help me retreve my apparent $ 20,000.loss. Who can, who will help us investers under 50,000.?

    Posted on December 27, 2008 at 11:21 pm

  • Brenda says:

    Why would you not consider mass representation of those of us who lost less than $50,000 in the Lehman Brothers fraud?

    I lost $20,000 as a preferred stockholder of Series “D”.

    Would be willing to give you all the needed information if a class action lawsuit was available. There are many of us left in the cracks

    Posted on December 28, 2008 at 6:31 pm

  • Mike says:

    UBS sold me almost $250,000 in sStructrued notes. 100% prinicple protection. I lost it all and UBS telling me there is nothing they can do.

    Posted on January 2, 2009 at 4:06 pm

  • Charles says:

    My broker at Schwab put in a $50,000 Lehman bond as part of a ‘safe’ investment program that I asked for. Who’s looking out for us ?

    Posted on February 1, 2009 at 8:32 pm

  • Howard says:

    I purchased $20,000 of Lehman Bros Holdings Bonds based on my
    brokers guidance and the fact that the Ratings Agencies had the
    (3) bonds rated as “Investment Grade”. This situation is not a matter of brokerage misinterpretatiom but , in my opinion, Rating Agencies
    corruption, greed, conflict of interest, or just plain malfeasance. I believe that the ratings agencies should be mandated to pay back investor losses, not the brokerage houses. I would have never purchased the bonds on my brokers say-so if they were not rated
    investment grade. It would be foolish to pursue litigation on an individual basis for a $20,000 claim; however a class-action suit
    may be practical for those (small) investors who have been financially damaged and lack representation. Its a sad World when only investmemts of $50,000 are protected. It is over 4 months now
    since the bankruptcy was declared and I have not received a single
    contact from anyone regarding my standing to recoup any of my
    investment. ( Of course the judge in the proceedings allowed major portions of Lehman Bros to be sold off for pennies on the dollar immediately following the filing. ) What has occurred is despicable.

    Posted on February 4, 2009 at 1:20 pm

  • Julia says:

    I purchased $30,000 of Lehman Bros Holdings Bonds at the recommendation of Edward Jones. I was asking for a safe investment like a CD from a bank and they told me this was just as safe as a CD with alittle better interest. I was investing money that I inherited from my mother who had worked many years to save to pass on. I wanted it safe so I could pass it on to my children. I think Edward Jones should have some responsibility in this. They assured me they were insured but did not explain that was only if they went bankrupt. I think they mishandled my money. I would like to be part of a class action suit if there is one.

    Posted on March 23, 2009 at 10:55 am

  • Lamar says:

    It looks like a lot of these folks who reply on the Lehmann Brothers were in the $20,000 range. That is strange! I also was taken advantage of by my broker who “did not even consult me” about the purchase of Lehamann Brothers. He took $20,000 of mine in March of 2008 and now it is all gone! Don’t I have any recourse for such terrible actions on the part of such a “crook” as he was? Where do we go from here? Do we just lay back and take it all or do we get a “bailout” like all of the firms who did the wrong and they continue with our “tax money” while we have problems facing life and can’t hardly get along! something is wrong with all of this. Our Government should send every person who lost any money regarding Lehmann Brothers the exact amount in a check. They can do it! We pay our taxes and bailout funds are really ours anyway! Get our funds from the “bailouts” and give it back to us rather than the firms!!!

    Posted on March 24, 2009 at 9:47 am

  • Ron says:

    UBS sold me $20,000 of 100% Principal Protected Notes, with “100% Principal protection” mentioned 6 times on Page one of the prospectus, once on Page two. There is not even the hint of any possibility of principal loss, default, etc on any page of the prospectus if the notes are held to maturity. Lehman Brothers rated A+ by Standard and Poor’s and A1 by Moody’s.

    Am I missing something, but isn’t this just another Ponzi scheme that is being liquidated by the government with no consideration for the damage it has caused small, medium, and large investors alike?

    It is just pathetic that the legal profession that rails against tort reform that would take away the ‘keys to the courthouse’, finds that those keys only work if there is a big enough dollar amount involved. Certainly, there must be some firm that would be willing to represent those of use below this $50,000 threshold.

    Posted on April 5, 2009 at 11:59 am

  • Donna says:

    All brokerage firms sold these so called 100% Principal Protection Notes under their name, not Lehman Bros. I was sold 280,000 of these notes by my UBS Rep – Trade confirmation said “UBS 100% Principal Protection Notes”. 4 months later it was changed on my statement to “LB 100% Princiapl Protection Notes” 4 months after that lehman declared bankruptcy – tell me UBS didn’t see this coming. Got the same story from UBS – nothing I can do but wait in line for the bankruptcy – FINRA gave them a slap on the hand – all regulating agencies failed the investors on this one and the only people getting rich off this is the lawyers who will be hired by the individual investor to try and get their money back from the major firms, like UBS – only any award will be at least 30% less after lawyer fees – what a crime – and it was committed in broad daylight in front of all regulators. Shame Shame Shame on the system.

    Posted on June 18, 2009 at 7:20 pm

  • Andy says:

    They just want the big bucks, heck with us who has less, not worth thier time or trouble. I kast 20K

    Posted on July 1, 2009 at 1:29 pm

  • EDWARD says:


    Posted on July 23, 2009 at 5:11 pm

  • Jim says:

    My broker with Edward Jones put $45,000 in Lehman Bond and said they were a good investment because they were Senior Bonds. When I contact him on two occasions regard selling he said if they are purchase and go into bankrupcy will will get most of your money back. At the time I was saying I should get out they had loss about 1/3 of the value. He acted like I was stupid and to just sit tight. Well know they are worth pennies and he never spoke to me again which wsa over one year. He said you have to take your complaint up with Edward Jones Headquarters who just gave me the brush off. Being retired and living on a fixed income was very bad advice from Edward Jones.

    Posted on November 17, 2009 at 5:34 pm

  • Jim says:

    I Lost 23000.00 in putnam funds in which I invested in Edward Jones in early 2000. Edward Jones knew about the scandals from putnam and did nothing to protect or warn me. I can surely learn to mismanage my own money without paying anyone!! Lets stop relying and paying a supposed professional to lose are money and put em out of business!!!

    Posted on November 25, 2009 at 5:09 pm

  • Terry says:

    A edward jones investment advisor in the United kingdom persuaded my 89 year old mother in law to invest in Lehman bonds .He said they were fully insured and she could not lose money . Guess what they wernt she has lost 50,000 $ US and he dosnt work there any more . These people have committed out and out Fraud . Why havent they been prosecuted?

    Posted on September 17, 2010 at 12:37 pm

  • edwin says:

    Would like to recover my losses from Lehman Bros.

    Posted on May 23, 2011 at 4:03 pm

  • Gabriel says:

    Urbi Desarollo Bonds with Maturity of 2016. Merrill Lynch Brokers (Runners on this bond) recommended in August of 2012 I purchase 200K of this bond. In October of 2012 I received the interest payment but soon after the company started having problems. I wanted to sell but my BROKER strongly advised me to hold. They missed the April payment and the bond fell to 21% its’ value based on the constant HOLD recommendations.

    Posted on July 17, 2013 at 4:25 am

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