(August 25, 2011) — Lehman Brothers Holdings executives are aiming to pay $90 million to settle an investor lawsuit, brought by shareholders of the failed investment bank, that alleges former executives and board members misled investors about the firm’s financial situation before its bankruptcy filing.

According to a filing in US Bankruptcy Court in Manhattan, investors blamed Lehman officers and directors for losses on Lehman stock and options from June 12, 2007, to September 15, 2008, Bloomberg has reported. The pending settlement would end a class-action suit that began in June 2008.

Additionally, the Securities and Exchange Commission (SEC) and the Justice Department are currently looking into the bank’s disclosures and its use of Repo 105 transactions – repurchase agreements that allowed short-term loans to appear as sales.

According to the court filing, while the insurance companies have agreed to the terms of the settlement, it will also need to be approved by a US District Court judge overseeing the class-action litigation. Among the plaintiffs that will receive money, according to the Financial Times, are the Alameda County Employees’ Retirement Association, the Government of Guam Retirement Fund and the City of Edinburgh Council as administering authority of the Lothian Pension Fund.

In February, aiCIO reported that the California Public Employees’ Retirement System (CalPERS) was suing former Lehman executives and underwriters, alleging the same infractions as the plaintiffs in the most recent ruling. According to the Los Angeles Times, CalPERS owned 3.9 million shares of Lehman common stock as well as around $700 million of the company’s bonds when the former financial giant filed for bankruptcy in September 2008.