Thursday, December 24, 2009

Lehman Brothers 'HOCKEY STICK' pitch led to decline--shareholder suit

Above now infamous Hockey Stick graph popularized by the Climategate unit. Mr. McIntyre's corrected data is the green overlay. graph via Volokh
just as Wall Street investment bank Lehman Brothers went bust in September 2008."...
  • Therefore, if it's OK with you people rattling around in the UK and in a magazine headquartered there available for a fee, we're putting a stop to this as regards the United States. It's been easy for you so far, as we've had no leadership here for 20 years.
  • Lehman Brothers used the hockey stick as its top sales pitch, page 6 in its 2007 report, The Business of Climate Change.

2/6/08, Shareholders charged Lehman Bros. use of 'hockey stick' graph and other erroneous information on global warming harmed investors. Lehman itself produced a document in 2007 making certain conclusions about global warming that were relied on as fact by others.

When a $34 billion company is touting misinformation as a basis for its
actions, it makes you wonder about the soundness of its business plan,” Milloy

But the hockey stick graph was scientifically discredited long before Lehman
issued its February 2007

“As shareholders, we expect that management will undertake reasonable due
diligence before undertaking action with corporate assets,” said AFM’s Tom
Borelli. “Corporate action and statements based on erroneous information may
not be ’sustainable’ for shareholders or the environment,” Borelli added.

  • “Lehman Brothers should also be concerned about potential legal liability for false and misleading statements,” said Milloy.

Based on the 2003 California case of Nike v. Kasky, citizens may sue
businesses over false or misleading statements.(3) The California Supreme
Court ruled that statements made on company websites are considered commercial
speech and therefore subjected to legal challenge.

  • We think that Lehman is in way over its head when it comes to global warming and that management is recklessly risking shareholder value,” said Milloy.
  • “Shareholders will be looking for an explanation from CEO Richard Fuld”….
1. See Lehman's "The Business of Climate Change: Challenges and
Opportunities," p.6 (February 2007).

2. See e.g., U.S. Senate Committee on Environment
and Public Works,
"Inhofe Says NAS Report Reaffirms
'Hockey Stick' Is Broken" (June 22, 2006),

3. Kasky v. Nike, Inc., 27 Cal.4th 939, 947, 45 P.3d 243, 248, 119 Cal.Rptr.2d
296, 302 (Cal. 2002)
Reference, 2/17/08: "A year ago they couldn’t predict their bankruptcy but were predicting the climate 100 years ahead. Thousands...have been using the Lehman report as a proof of global warming and impending chaos.
The report is the basis for policies on climate change in Spain, Argentina and several other countries playing the progress game; it is used by
  • economy professors playing the climatologists;
by newspapers editorials, and even by a State Secretary: Lehman Bros, said it!...
  • Al Gore’s carbon trading business GIM was banked with Lehman Bros."...
from Icecap, 9/17/08, "Lehman Brothers Close Ties to Gore, Hansen, and Carbon Trading," via Tom Nelson



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