-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OsflQAM4JimJulQLvwJeGyadMDEFGv+3Hzr+DKRpWOVTru1ZVv4zpMYCHNPYxrwB QUzGJ11fPFoPawvIJD/j4w== 0000806085-98-000098.txt : 19980602 0000806085-98-000098.hdr.sgml : 19980602 ACCESSION NUMBER: 0000806085-98-000098 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980601 SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: L 3 COMMUNICATIONS HOLDINGS INC CENTRAL INDEX KEY: 0001056239 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 133937434 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: SEC FILE NUMBER: 005-54117 FILM NUMBER: 98640608 BUSINESS ADDRESS: STREET 1: 600 THIRD AVENUE STREET 2: 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10016 BUSINESS PHONE: 1216971111 MAIL ADDRESS: STREET 1: 600 THIRD AVENUE STREET 2: 34TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10016 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LEHMAN BROTHERS HOLDINGS INC CENTRAL INDEX KEY: 0000806085 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 133216325 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: AMERICAN EXPRESS TWR STREET 2: 3 WORLD FINANCIAL CNTR CITY: NEW YORK STATE: NY ZIP: 10285 BUSINESS PHONE: 2125267000 MAIL ADDRESS: STREET 1: AMERICAN EXPRESS TOWER 15TH FL STREET 2: 2 WORLD TRADE CENTER CITY: NEW YORK STATE: NY ZIP: 10048 FORMER COMPANY: FORMER CONFORMED NAME: SHEARSON LEHMAN HUTTON HOLDINGS INC DATE OF NAME CHANGE: 19901017 SC 13D 1 L-3 COMMUNICATIONS HOLDINGS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Amendment No.__ Under the Securities Exchange Act of 1934 L-3 COMMUNICATIONS HOLDINGS, INC. (Name of Issuer) Common Stock, par value $0.01 (Title of Class of Securities) 502424104000 (CUSIP Number) Jennifer Marre Secretary Lehman Brothers Holdings Inc. 3 World Financial Center, 24th Floor New York, NY 10285 (212) 526-1936 (Name, Address and Telephone Number of Person Authorized to Receive Notice and Communications) May 21, 1998 (Date of Event which required Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person Lehman Brothers Holdings Inc. 13-3216325 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(E) [ ] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 10,020,000 8) Shared Voting Power -0- 9) Sole Dispositive Power 10,020,000 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 10,020,000 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 37.9% 14) Type of Reporting Person HC/CO After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LEHMAN BROTHERS HOLDINGS INC. By: /s/ Jennifer Marre --------------------- Name: Jennifer Marre Title: Vice President and Secretary CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person Lehman Brothers Inc. 13-2518466 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Requires Pursuant to Items 2(d) or 2(E) [X] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 2,004,000 8) Shared Voting Power -0- 9) Sole Dispositive Power 2,004,000 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 2,004,000 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 7.6% 14) Type of Reporting Person BD/CO After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LEHMAN BROTHERS INC. By: /s/ Jennifer Marre ------------------- Name: Jennifer Marre Title: Vice President and Secretary CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person LB I Group Inc. 13-2741778 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Requires Pursuant to Items 2(d) or 2(E) [ ] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 2,004,000 8) Shared Voting Power -0- 9) Sole Dispositive Power 2,004,000 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 2,004,000 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 7.6% 14) Type of Reporting Person HC/CO After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LB I GROUP INC. By: /s/ Jennifer Marre ------------------- Name: Jennifer Marre Title: Secretary CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person Lehman Brothers Capital Partners III, L.P. 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(E) [ ] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 8,016,000 8) Shared Voting Power -0- 9) Sole Dispositive Power 8,016,000 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 8,016,000 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 30.3% 14) Type of Reporting Person LP After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LEHMAN BROTHERS CAPITAL PARTNERS III, L.P. By: /s/ Jennifer Marre --------------------- Name: Jennifer Marre Title: Authorized Signatory CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person Lehman Brothers MBG Partners 1997 (A) L.P. 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Requires Pursuant to Items 2(d) or 2(E) [ ] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 421,489 8) Shared Voting Power -0- 9) Sole Dispositive Power 421,489 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 421,489 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 1.6% 14) Type of Reporting Person CO After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LEHMAN BROTHERS MBG PARTNERS 1997 (A) L.P. By: /s/ Jennifer Marre ------------------- Name: Jennifer Marre Title: Authorized Signer CUSIP No. 502424104000 1) Names of Reporting Person S.S. or I.R.S. Identification No. of Above Person Lehman Brothers MBG Partners 1997 (B) L.P. 2) Check the Appropriate box if a Member of a Group (see instructions) (a) [ ] (b) [ ] 3) SEC Use Only 4) Source of Funds (see instructions) OO 5) Check Box if Disclosure of Legal Proceedings is Requires Pursuant to Items 2(d) or 2(E) [ ] 6) Citizenship or Place of Organization Delaware Number of Shares Beneficially Owned by Each Reporting Person With: 7) Sole Voting Power 187,329 8) Shared Voting Power -0- 9) Sole Dispositive Power 187,329 10) Shared Dispositive Power -0- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 187,329 12) Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ] 13) Percent of Class Represented by Amount in Row 9 .7% 14) Type of Reporting Person LP After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: May 21, 1998 LEHMAN BROTHERS MBG PARTNERS 1997 (B) L.P. By: /s/ Jennifer Marre ------------------- Name: Jennifer Marre Title: Authorized Signer Schedule 13D Item 1. Security and Issuer This statement relates to the Common Stock, par value $0.01 (the "Common Stock"), of L-3 Communications Holdings, Inc., a Delaware corporation ("L-3 Communications"). The address of the principal executive offices of L-3 Communications is 600 Third Avenue, 34th Floor, New York, NY 10016. Item 2. Identity and Background This statement is filed on behalf of the following entities: Lehman Brothers Holdings Inc., a Delaware corporation ("Holdings"), 3 World Financial Center 200 Vesey Street New York, NY 10285 Holdings through its domestic and foreign subsidiaries is a full-line securities firm and is General Partner of Lehman Brothers Capital Partners III, L.P. Lehman Brothers Inc., a Delaware corporation ("LBI"), 3 World Financial Center 200 Vesey Street New York, NY 10285 LBI is a wholly owned subsidiary of Holdings and is the parent of LB I Group Inc. LB I Group Inc., a Delaware corporation, ("LB I Group"), 3 World Financial Center 200 Vesey Street New York, NY 10285 LB I Group is a wholly owned subsidiary of LBI and is the General Partner of Lehman Brothers MBG Partners 1997 (A) L.P. and Lehman Brothers MBG Partners 1997 (B) L.P. Lehman Brothers Capital Partners III, L.P., a Delaware limited partnership ("Capital Partners"), 3 World Financial Center 200 Vesey Street New York, NY 10285 Capital Partners is a limited partnership. Lehman Brothers MBG Partners 1997 (A) L.P., a Delaware limited partnership ("MBG Partners (A)"), 3 World Financial Center 200 Vesey Street New York, NY 10285 MBG Partners A is a limited partnership. Lehman Brothers MBG Partners 1997 (B) L.P. a Delaware limited partnership ("MBG Partners (B)"), 3 World Financial Center 200 Vesey Street New York, NY 10285 MBG Partners (B) is a limited partnership. The names, residence or business addresses, citizenships and present principal occupations or employment of the senior executive officers and directors of the Reporting Persons are set forth in Appendix A hereto. Neither the Reporting Persons nor to the best knowledge of the Reporting Persons nor any of the persons listed in Appendix A hereto have during the last five years (i) been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) except as set forth in Appendix B attached hereto and incorporated herein by reference has been party to a civil proceeding of a judicial or administrative body of a competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Item 3. Source of Funds or Other Consideration See Item 4. Item 4. Purpose of Transaction As of May 18, 1998, L-3 Communications amended its Certificate of Incorporation to convert the different classes of its common stock into one class, the Common Stock, with each outstanding share of Class A and Class B Common Stock being converted into one share of Common Stock, and to increase the authorized shares to 100,000,000 shares of Common Stock. Immediately prior to such conversion, L-3 Communications initially offered 6,000,000 shares of Common Stock, 4,800,000 shares were offered in the U.S. and Canada by U.S. Underwriters and 1,200,000 shares were initially offered outside the U.S. and Canada by the International Managers (the "Common Stock Offering"). Before the Common Stock Offering, The reporting Persons beneficially owned an aggregate of 10,020,000 shares of Class B Common Stock of L-3 Communications; Capital Partners owned 8,016,000 shares of Class B Common Stock, LB I Group owned 1,395,182 shares of Class B Common Stock, MBG Partners (A) owned 421,489 shares of Class B Common Stock and MBG Partners (B) owned 187,329 shares of Class B Common Stock. The percentage of such beneficial ownership was an aggregate of 49.0%. After the Common Stock Offering, the shares of Class B Common Stock of L-3 Communications converted into one share of Common Stock; Capital Partners received 8,016,000 shares of Common Stock, LB I Group received 1,395,182 shares of Common Stock, MBG Partners (A) received 421,489 shares of Common Stock and MBG Partners (B) received 187,329 shares of Common Stock. The Reporting Persons beneficially own an aggregate of 37.9% of the Common Stock. Holdings, General Partner of Capital Partners; LBI, parent of LB I Group; and LB I Group, General Partner of MBG Partners (A) and MBG Partners (B), are deemed indirect beneficial owners of such shares. David J. Brand, Alberto M. Finali, Eliot M. Fried, Robert B. Millard and Alan H. Washkowitz, Directors of L-3 Communications, are also the limited partners of Capital Partners. Alberto M. Finali, Robert B. Millard and Alan H. Washkowitz are also limited partners of MBG Partners (A). David J. Brand is also a limited partner of MBG Partners (B). Such individuals may be deemed to have shared beneficial ownership of shares of Common Stock held by Capital Partners, MBG Partners (A) and MBG Partners (B). Such individuals disclaim any such beneficial ownership. Under the terms of a Stockholders Agreement, dated as of April 30, 1997, among L-3 Communications, Lockheed Martin, Capital Partners, and Messrs. Lanza and LaPenta, certain rights are restricted on the sale of Common Stock of L-3 Communications by the parties after the Common Stock Offering. Except for the terms relating to (i) registration rights, (ii) provision of services by Lehman Brothers Inc. and (iii) the standstill agreement by Lockheed Martin, the Stockholders Agreement terminated upon consumption of the Common Stock Offering. Pursuant to the U.S. Underwriting Agreement and the International Underwriting Agreement, respectively, Lehman Brothers Inc. and Lehman Brothers International (Europe) received customary and usual compensation and indemnification and contribution from L-3 Communications as an underwriter and lead manager, respectively. The Reporting Persons intend to continually evaluate L-3 Communications business, prospects, financial condition, the market for the Shares, other opportunities available to the Reporting Persons, general economic conditions, money and stock market conditions and other factors and future developments which the Reporting Persons may deem relevant from time to time. Depending on same factors, the Reporting Persons may decide, subject to the above referenced agreements, to sell all or part of the shares it holds. Any such acquisition or disposition of Shares may be effected through open market or privately negotiated transactions, or otherwise. Except as set forth in this Item 4, the Reporting Persons does not have any specific plans or proposals that relate to or would result in any of the actions specified in clauses (a) through (j) of Item 4 of Schedule 13D. Item 5. Interest in Securities of the Issuer (a) See Item 4. (b) The Reporting Persons have sole power to vote and dispose of all the shares of Common Stock. (c) LBI and other affiliates in the ordinary course of business as broker dealers, may have purchased and sold shares of Common Stock on behalf of their customers. (d) Neither the Reporting Persons nor to the best knowledge of the Reporting Persons nor any of the persons listed in Appendix A hereto know of any other person who has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any shares of Common Stock beneficially owned by the Reporting Persons, other than customers of Lehman Brothers over whose shares Lehman Brothers may have investment discretion. (e) Not Applicable. Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. See Item 4. David J. Brand, Alberto M. Finali, Eliot M. Fried, Robert B. Millard and Alan H. Washkowitz are Managing Directors of Lehman Brothers Inc. and the limited partners of Capital Partners. Alberto M. Finali, Robert B. Millard and Alan H. Washkowitz are also limited partners of MBG Partners (A). David J. Brand is also a limited partner of MBG Partners (B). Item 7. Material to be Filed as Exhibits. Stockholders Agreement, dated as of April 30, 1997, among L-3 Communications, and the stockholders party, incorporated by reference as Exhibit 10.3 to Registration File No. 333-46975 Form of U.S. Underwriting Agreement among L-3 Communications and U.S. Underwriters named therein, incorporated by reference as Exhibit 1.1 to Registration File No. 333-46975 Form of International Underwriting Agreement among L-3 Communications and International Managers named therein, incorporated by reference as Exhibit 1.2 to Registration File No. 333-46975 APPENDIX A LEHMAN BROTHERS HOLDINGS INC. BOARD OF DIRECTORS NAME / TITLE BUSINESS ADDRESS Michael L. Ainslie Lehman Brothers Holdings Inc. Private Investor and former 3 World Financial Center President and Chief Executive New York, NY 10285 Officer of Sotheby's Holdings John F. Akers Lehman Brothers Holdings Inc. Retired Chairman of 3 World Financial Center International Business Machines New York, NY 10285 Corporation Roger S. Berlind Lehman Brothers Holdings Inc. Theatrical Producer 3 World Financial Center New York, NY 10285 Thomas H. Cruikshank Lehman Brothers Holdings Inc. Retired Chairman and Chief 3 World Financial Center Executive Officer of Halliburton New York, NY 10285 Company Richard S. Fuld, Jr. Lehman Brothers Holdings Inc. Chairman and Chief Executive 3 World Financial Center Officer of Lehman Brothers Holdings New York, NY 10285 Inc. Henry Kaufman Lehman Brothers Holdings Inc. President of Henry Kaufman & 3 World Financial Center Company, Inc. New York, NY 10285 Hideichiro Kobayashi* Lehman Brothers Holdings Inc. General Manager for the Americas 3 World Financial Center Nippon Life Insurance Co. New York, NY 10285 John D. Macomber Lehman Brothers Holdings Inc. Principal of JDM Investment Group 3 World Financial Center New York, NY 10285 Dina Merrill Lehman Brothers Holdings Inc. Actress and Director and Vice 3 World Financial Center Chairman of RKO Pictures, Inc. New York, NY 10285 - ----- All above individuals are citizens of the United States except those individuals with an * who are citizens of Japan. LEHMAN BROTHERS HOLDINGS INC. EXECUTIVE OFFICERS NAME / TITLE BUSINESS ADDRESS Richard S. Fuld, Jr. Lehman Brothers Holdings Inc. Chairman and Chief Executive Officer 3 World Financial Center of Lehman Brothers Holdings Inc. New York, NY 10285 Jeremiah M. Callaghan Lehman Brothers Holdings Inc. Chief of Operations and Technology 3 World Financial Center New York, NY 10285 John L. Cecil Chief Administrative Officer Lehman Brothers Holdings Inc. 3 World Financial Center New York, NY 10285 Thomas A. Russo Lehman Brothers Holdings Inc. Chief Legal Officer 3 World Financial Center New York, NY 10285 Charles B. Hintz Lehman Brothers Holdings Inc. Chief Financial Officer 3 World Financial Center New York, NY 10285 - ----- All above individuals are citizens of the United States. LEHMAN BROTHERS INC. BOARD OF DIRECTORS NAME BUSINESS ADDRESS Roger S. Berlind Lehman Brothers Inc. Theatrical Producer 3 World Financial Center New York, NY 10285 Howard L. Clark, Jr. Lehman Brothers Inc. Vice Chairman 3 World Financial Center New York, NY 10285 Frederick Frank Lehman Brothers Inc. Vice Chairman 3 World Financial Center New York, NY 10285 Richard S. Fuld, Jr. Lehman Brothers Inc. Chairman and Chief Executive 3 World Financial Center Officer of Lehman Brothers Holdings New York, NY 10285 Inc. Charles B. Hintz Lehman Brothers Inc. Managing Director and 3 World Financial Center Chief Financial Officer New York, NY 10285 Harvey M. Krueger Lehman Brothers Inc. Vice Chairman 3 World Financial Center New York, NY 10285 Bruce R. Lakefield * Lehman Brothers Inc. Managing Director 3 World Financial Center New York, NY 10285 Sherman R. Lewis, Jr. Lehman Brothers Inc. Vice Chairman 3 World Financial Center New York, NY 10285 - ----- Above individuals are citizens of the United States except those individuals with an * who are citizens of the United Kingdom. LEHMAN BROTHERS INC. EXECUTIVE OFFICERS NAME / TITLE BUSINESS ADDRESS Richard S. Fuld, Jr. Lehman Brothers Holdings Inc. Chairman and Chief Executive Officer 3 World Financial Center of Lehman Brothers Holdings Inc. New York, NY 10285 Jeremiah M. Callaghan Lehman Brothers Holdings Inc. Chief of Operations and Technology 3 World Financial Center New York, NY 10285 John L. Cecil Chief Administrative Officer Lehman Brothers Holdings Inc. 3 World Financial Center New York, NY 10285 Thomas A. Russo Lehman Brothers Holdings Inc. Chief Legal Officer 3 World Financial Center New York, NY 10285 Charles B. Hintz Lehman Brothers Holdings Inc. Chief Financial Officer 3 World Financial Center New York, NY 10285 - ----- All above individuals are citizens of the United States. LB I GROUP INC. BOARD OF DIRECTORS NAME BUSINESS ADDRESS Eliot Fried Lehman Brothers Inc. Managing Director 3 World Financial Center New York, NY 10285 David Goldfarb Lehman Brothers Inc. Controller 3 World Financial Center New York, NY 10285 Allan S. Kaplan Lehman Brothers Inc. Managing Director 3 World Financial Center New York, NY 10285 - ----- Above individuals are citizens of the United States. APPENDIX B Fulco v. Continental Cablevision. This civil action was brought in the United States District Court for the District of Massachusetts alleging a violation of Rule 10b(5) for a material omission in the disclosure documents related to a 1989 partnership roll-up in which Shearson Lehman Brothers rendered a fairness opinion. The jury rendered a verdict in 1993 jointly against Shearson Lehman Brothers and Continental Cablevision, the issuer, for a total of $4.6 million. The case was settled shortly thereafter. Lehman Brothers has been involved in a number of civil proceedings which concern matters arising in connection with the conduct of its business. Certain of such proceedings have resulted in findings of violation of federal or state securities laws. Each of these proceedings was settled by Lehman Brothers consenting to the entry of an order without admitting or denying the allegations in the complaint. All of such proceedings are reported and summarized in the Schedule D to Lehman Brother's Form BD filed with the Securities and Exchange Commission, which descriptions are hereby incorporated by reference. -----END PRIVACY-ENHANCED MESSAGE-----