Jefferies fights “lies”

BOSTON (AP) — Investment bank Jefferies Group Inc. on Monday tried to calm recent market worries about its financial exposure to Europe’s debt crisis with a letter stating that it has been the target of an orchestrated campaign of “malicious lies and false rumors” in the wake of the MF Global Holdings collapse.

The company said it has recently cut its exposure to debt-burdened European countries, and that it expects to post record operating results for its fiscal fourth quarter.

The letter follows a sell-off of Jefferies shares that has reduced their value by about one-third since Oct. 27.

A six-page letter addressed to “clients, shareholders, bondholders, employees and friends” from Chairman and CEO Rich Handler and Executive Committee Chair Brian Friedman said: “Throughout the month of November, Jefferies has been barraged by a group of people maliciously spreading rumors, half-truths and outright lies through every means possible, including calling analysts and security holders, as well as using the mass media in an effort to amplify and legitimize their efforts.”