Maher brothers make $1.1 billion claim against Lehman
| Related Stories • Deutsche Bank fund completes Maher acquisition |
Maher brothers make $1.1 billion claim against Lehman
New Jersey-based brothers Brian and Basil Maher have launched a $1.14 billion claim against Lehman Brothers Holdings Inc. for allegedly mishandling some of the proceeds from the sale of the family’s container terminal business last summer.
According to a filing with the Financial Industry Regulatory Authority’s arbitration forum, the two brothers invested $600 million with Lehman after the July 2007 sale of Maher Terminals to Deutsche Bank’s RREEF Infrastructure. The Maher’s claim that they instructed Lehman, via their privately held company Essex Equity Holdings, to invest the money in short-term, liquid assets, but that the Wall Street firm went against their wishes and placed the money in so-called auction-rate securities that no longer have a market after the recent credit market crisis.
The Maher’s want Lehman to buy the $286 million in illiquid debt securities and pay another $857 million to cover punitive damages, legal costs and interest.
