Shepherd Smith law firm examines claims on Lehman structured products

By Susanna Moon

Chicago, Sept. 30 - Shepherd Smith Edwards & Kantas LLP said it is investigating claims on behalf of purchasers of structured products created by the now defunct Lehman Brothers Holdings Inc.

Structured products are financial instruments that combine derivatives with fixed income or equities.

These notes were typically marketed to conservative investors seeking preservation of capital, a reasonable yield and the potential for a modest gain in principal, Shepherd Smith said.

Major brokerage houses marketed these products to some of their best and most conservative clients, the law firm said.

In reality, these investments were being used by Lehman, and other brokerage firms, to help finance their operating shortfalls, Shepherd Smith contended.

The firm's investigation has uncovered that buyers rarely knew there was an issuer involved other than their brokerage firm, the firm said. They were immediately subject to the credit of the issuer and if the issuer were to default, the investment could become worthless.

The firm said it would like to hear from investors whose financial advisers recommended purchasing Lehman structured notes, or any structured product that failed.

Shepherd Smith is a Houston-based securities law firm.

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