Corporate & Securities Law

As many as 113 former Lehman Brothers Inc. (LBI) employees/advisers are being pursued for collection of their promissory note balances despite the firm?s demise in September 2008.  Lehman Brothers Holdings Inc. (LBHI)  is seeking to collect as much as $51 million in outstanding balances allegedly owed to LBI on outstanding promissory notes (evidencing employee forgivable loans made to former employees) dating back as far as 1996. 

So far, two awards have been entered against reps who failed to appear and/or contest the validity of Lehman?s claims.  In Lehman Brothers Holdings Inc., as assignee of Lehman Brothers Inc. v. Stroud(FINRA No. 10-04368), the firm obtained an award of $221,979.78 (inclusive of interest), as well as $33,296.96 in attorneys? fees and reimbursement of its costs, against a former employee who purportedly owed money pursuant to his promissory note with the firm.  Likewise, in Lehman Brothers Holdings Inc., as assignee of Lehman Brothers Inc. v. Carson (FINRA No. 10-04316) the firm obtained an award of $26,600 (the full amount sought) against its former employee.  Those so-called ?default? awards are unfortunate given that reps may have legitimate defenses to the promissory note claims.

The experienced securities attorneys at Eccleston Law stand ready to assist and defend, by asserting all available legal and equitable defenses (as well as any counterclaims, if appropriate).  If you are a former Lehman rep being pursued on a promissory note claim, or have more information regarding Lehman?s collection efforts, please contact Jim Eccleston at Eccleston Law Offices at 312-332-0000.