On April 20th, the district court overseeing the Lehman Brothers securities and ERISA litigation refused to stay a significant part of a FINRA arbitration brought by a purchaser of Lehman bonds and filed against Richard S. Fuld Jr., the former CEO and Chairman of Lehman Brothers Holdings, Inc., and its broker-dealer, Lehman Brothers, Inc. ("LBI"). Plaintiff, who bought the bonds from LBI, seeks to hold Fuld liable for LBI's failures to disclose risks associated with the bonds and for various breaches of duty and contract under theories of respondeat superior and control person liability. It bases its claims, in large part, on the special examiner's report concerning Fuld's alleged decisions to increase LBHI's risk profile, his public statements about LBHI's financial health, internal memoranda, and LBHI's use of "Repo 105-108" transactions and related accounting. Finding that Fuld, as CEO and Chairman of LBI, was an associated person and that six of plaintiff's seven claims arise out of LBI's business activities, the court held that the claims were the proper subject of a FINRA arbitration. In doing so the court recognized the merit to having the claims against Fuld adjudicated in one court, subject to the Private Securities Litigation Reform Act and the Securities Litigation Uniform Standards Act. However, it concluded that Fuld's arguments were conclusory and that Fuld had failed to show that the arbitration would interfere with the federal, multi-district litigation. In the Matter of the Application of Richard S. Fuld, Jr.