Lawsuits: Another Shoe in a Scandal

Another Shoe in a Scandal

The biggest insider-trading scandal in Wall Street history kept reverberating last week. Litton Industries, the Beverly Hills-based conglomerate, filed a $30 million lawsuit against Shearson Lehman Bros., the finance-cum-brokerage firm, and Dennis Levine, the ex-investment whiz who has already pleaded guilty to a variety of insider-trading charges filed by the U.S. Government. Litton's contention: that in November 1982, while Levine was employed by Lehman Bros. Kuhn Loeb (now merged into Shearson Lehman), his illicit trading activities helped puff up the price of stock in Itek, an electronics firm, just as Litton was preparing to buy the company. Shearson officials have described...

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