Investors Sue Lehman Bros. CFO

CHICAGO (CN) – Lehman Bros . CFO Christopher O’Meara defrauded investors by concealing and denying the extent of Lehman’s losses from mortgage-related securities to prop up the stock price, and when the truth was revealed in July 2007, share price dropped by 15 percent, a class-action shareholders’ derivative complaint claims in Federal Court. Plaintiffs claim the company did not announce the full extent of the losses – $5.9 billion during the year ending Nov. 30, 2007 – until Jan. 29.