SEC Denies Lehman Brothers Bid to Block Global Warming Shareholder Proposal

Excerpts from this press release:

WASHINGTON, Feb. 6 /PRNewswire-USNewswire/ -- The U.S. Securities and Exchange Commission denied a bid by Lehman Brothers to block shareholders from voting on a global warming-related shareholder proposal from the Free Enterprise Action Fund (Ticker: FEAOX).

"Lehman Brothers says it wants to make money from global warming, but basic information on which the firm relies and presents to shareholders is clearly erroneous," said Steve Milloy, portfolio manager of Action Fund Management (AFM), the FEAOX's investment adviser.

"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 added.

Lehman Brothers' management uses the so-called "hockey stick" chart, for example, to support the notion that "the Earth's mean temperature has risen sharply in recent decades."(1)

But the hockey stick graph was scientifically discredited long before Lehman issued its February 2007 report.(2)
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"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 at the annual shareholder meeting," Milloy concluded.

By investing in the FEAOX (http://www.feaox.com/), individuals can participate in the global warming debate while having an opportunity to earn a financial return through ownership of a large-cap mutual fund. With a minimum investment of $2,500, individuals can join FEAOX's effort to make CEOs justify their positions on global warming.

More about this fund is here.