NEW YORK, Oct. 10 /PRNewswire/ -- The Securities Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announced today that a class action lawsuit, Case No. 08-cv-08225, has been filed against Citigroup Global Markets, Inc. (NYSE: C) ('Citigroup') and other Defendants on behalf of purchasers of Lehman Brothers (OTC: LEHMQ.PK) Preferred Stock, Series J (OTC: LEHJQ.PK) ('Lehman Preferred Stock J'). Potential class members who purchased Lehman Preferred Stock J from Citigroup should consider whether they should participate in the class action or file an individual securities arbitration claim.

According to the Complaint, the Prospectus for the Lehman Preferred Stock J contained material misstatements and omissions. Specifically, it is alleged that the representations made in Lehman's Prospectus were materially false and misleading because at the time of the Offering, Lehman was already laboring under several negative factors that were not properly disclosed in the Prospectus, including the failure to set aside adequate allowances to cover Lehman's steadily increasing portfolio of underperforming subprime related products, and to adequately write-down residential and commercial mortgage and real estate assets. At the time, these factors were already causing a material adverse affect on Lehman's operations and led directly to the firm's announcement of September 15, 2008, that it would be seeking protection under the Federal Bankruptcy Code. Lehman would eventually be credited for initiating the largest bankruptcy filing in U.S. history.

The Complaint further alleges that Citigroup and other Defendants could have, and should have, discovered the misstatements and omissions in Lehman's Prospectus prior to its filing with the SEC and distribution to the investing public. As a result of an inadequate due diligence investigation on the part of Citigroup and other Defendants, the underwriters failed to discover the misstatements and omissions in Lehman's Prospectus on the Preferred Stock J.

On September 15, 2008, pursuant to Chapter 11 of the Federal Bankruptcy Code for the Southern District of New York, Lehman voluntarily filed a petition to reorganize the Company. Lehman's bankruptcy became the largest bankruptcy filing in history and essentially wiped out the investment interests of investors of Lehman Preferred Stock J. Due to the issuance of various false and misleading statements, the market price of Lehman Preferred Stock J was artificially inflated.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced significant losses in Lehman Preferred Stock J, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf

The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered investment losses. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you have experienced substantial losses in Lehman Preferred Stock J with Citigroup and you wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.

SOURCE The Securities Law Firm of Klayman & Toskes, P.A.