Judge Dismisses Suit Over Lehman Investment

SAN MATEO (AP) — A judge has dismissed a lawsuit over $20 million in losses incurred by San Mateo County officials when investment bank Lehman Brothers went bankrupt.

San Francisco Superior Court Judge Richard Kramer on Thursday affirmed a tentative ruling that said the county and former treasurer-tax collector Lee Buffington were immune from civil suits.

The county and Buffington were sued in January by 12 school districts in the county that lost $20 million when Lehman Brothers went under.

The districts' money was among $155 million the county had invested with Lehman Brothers.

The suit said Buffington and the county placed too much money in Lehman holdings and should have been more careful.

Farley Neuman, an attorney for the school districts, says he plans to appeal.

(Copyright 2011 The Associated Press)