Henry v. Lehman Commercial Paper, Inc. (In Re First Alliance Mortgage Co.)

CLIFTON, Circuit Judge:

First Alliance Mortgage Company was driven into bankruptcy and subsequent liquidation by well-publicized and justified allegations of fraudulent lending practices. The demise of First Alliance has led to two separate actions against Lehman Brothers, Inc. and its subsidiary Lehman Commercial Paper, Inc. (collectively referred to as “Lehman”) growing out of Lehman’s activity as a lender to First Alliance and as the underwriter of First Alliance’s securitized debt. One is a class action on behalf of First Alliance’s borrowers seeking to impose liability for aiding and…