NEW YORK, Sep 26, 2008 (BUSINESS WIRE) -- On September 24, 2008, Gainey & McKenna filed a class action lawsuit in
the United States District Court, Southern District of New York, on
behalf of all persons who purchased the Preferred Series "J"
stock ("Lehman Preferred J")
of Lehman Brothers Holdings Inc. ("Lehman"
or the "Company") [OTC:
LEHJQ.PK or LEHMQ.PK] from the date of the
Company's public offering on February 5, 2008
(the "Offering"),
and all purchasers traceable thereto (the "Class
Period") against certain officers and
directors of Lehman and certain Underwriters of the Offering, pursuant
to Sections 11 and 15 of the Securities Act of 1933 (the "Securities
Act"), 15 U.S.C.
77k, 77l and 77o (the "Class").
The Underwriters include Bank of America SecuritiesLLC [NYSE:BAC],
Citigroup Global Markets Inc. [NYSE:C],
Merrill Lynch, Pierce, Fenner & Smith Inc. [NYSE:MER],
Morgan Stanley & Co. Inc. [NYSE:MS],
UBS Securities LLC [NYSE:UBS],
and Wachovia Capital Markets, LLC [NYSE:WB].

The case name is styled Fogel Capital
Management, Inc. v. Richard S. Fuld, Jr., et al.

The Complaint asserts that Lehman's
Prospectus contained both material misstatements and omissions, which
Plaintiff and the Class relied upon to their detriment. The
representations made in the Company's
Prospectus were materially false and misleading because at the time of
the Offering, Lehman was already suffering from several adverse factors
that were not revealed and/or adequately addressed in the document;
including the failure to set aside adequate allowances to cover the
Company's ever increasing portfolio of
underperforming sup-prime related products and to adequately write-down
commercial and residential mortgage and real estate assets. These
factors were already causing a material adverse affect on Lehman's
business and directly led to Lehman's
September 15, 2008 announcement that it was seeking protection under the
Federal Bankruptcy Code in the largest bankruptcy filing in U.S. history.

The Complaint alleges that Defendants could have --
and should have -- discovered the material
misstatements and omissions in the Company's
Prospectus prior to its filing with the SEC and distribution to the
investing public. Instead, they failed to do so as a result of a
negligent and grossly inadequate due diligence investigation.

On September 15, 2008, Lehman filed a voluntary petition to reorganize
under Chapter 11 of the Federal Bankruptcy Code in the U.S. Bankruptcy
Court for the Southern District of New York in the largest bankruptcy
filing in history and largely wiping out the investment interests of the
Class.

As a result of the dissemination of the false and misleading statements
set forth in the complaint, the market price of Lehman Preferred J was
artificially inflated during the Class Period. In ignorance of the false
and misleading nature of the statements described in the complaint,
plaintiff and the other members of the Class relied, to their detriment,
on the integrity of the market price of Lehman Preferred J. Had
plaintiff and the other members of the Class known the truth, they would
not have purchased said securities, or would not have purchased them at
the inflated prices that were paid.

If you are a member of this class, you can view a copy of the complaint
as filed. Any member of the purported class may move the Court to serve
as lead plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member.

If you purchased Lehman Preferred J during the Class Period, you may
request that the Court appoint you as lead plaintiff no later than
November 24, 2008. Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Gainey & McKenna, or other counsel of your
choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions, please contact
Thomas J. McKenna at Gainey & McKenna, 295 Madison Avenue, 4th Floor New
York, New York 10017 by telephone at (212) 983-1300 and/or via e-mail at tjmckenna@gaineyandmckenna.com.

SOURCE: Gainey & McKenna

Gainey & McKenna 
Thomas J. McKenna, Esq., 212-983-1300 
Fax: 212-983-0383 
tjmckenna@gaineyandmckenna.com

Copyright Business Wire 2008