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Probe Asks if Lehman Misled Analysts: Report

TSC Staff

Federal prosecutors probing the collapse of Lehman Brothers have subpoenaed other securities firms, seeking information about whether their analysts were misled by Lehman about its financial health, the Wall Street Journal reports.

The subpoenas request information about statements Lehman made earlier this year as its stock was tumbling and questions about its strength were mounting. At least three U.S. attorneys offices are investigating Lehman's collapse, including the Southern District of New York, the newspaper reports. At least a dozen current and former Lehman executives also have been subpoenaed, including CEO Richard Fuld Jr.

Lehman filed for bankruptcy on Sept. 15, and its U.S. operations were sold to Barclays(BCS Quote).

The probes are at an early stage and their scope includes whether Lehman valued its assets at artificially high levels, improperly moved $8 billion from its London operations to New York just ahead of its bankruptcy filing and misled New Jersey's pension fund when it provided information about its financial health in connection with a June stock offering, the Journal reports, citing people familiar with the situation.