*NJ Governor Jon Corzine is headed into a close reelection race come November. His opponents would have had plenty of ammunition based on the state pension losses alone. Now he says they have been contemplating suing Lehman Brothers since December. If you believe that I have a bridge to sell you, and a stock for that matter.
New Jersey Sues Lehman Executives Over Pension Losses
By Terrence Dopp
March 17 (Bloomberg) -- New Jersey sued top executives and board members of Lehman Brothers Holdings Inc., saying that misrepresentations led to the state’s pension funds losing $118 million on investments in the now-bankrupt banking firm.
The suit, filed in state Superior Court in Trenton today, charges company officers including former Chief Executive Richard Fuld with violations of state and federal securities laws, negligent misrepresentation, breach of fiduciary duty, fraud and aiding and abetting. It seeks unspecified compensatory and punitive damages.
“With this suit, we intend to hold Lehman executives and directors accountable for the fraud and misrepresentation that caused more than $100 million in losses to New Jersey’s pension funds,” Governor Jon Corzine, a former chairman of Goldman, Sachs & Co., said in a statement.
New Jersey’s pension funds provide benefits to 700,000 current and future retirees. The funds’ value has dropped to $59.2 billion from $82.2 billion as of June 2007 amid losses on investments in stocks and bonds.
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