Jefferies’ Series of Bad Bets Has Firm Facing Lawsuits, Judgment Questions

From phantom water machines to faked invoices, a trail of corporate wreckage is pushing Jefferies Financial Group Inc.’s hard-charging ways into public view as firms fight to recoup their lost millions.

Jefferies is facing a slew of lawsuits after its bets on car-parts supplier First Brands Group and water-vending machine business Water Station unraveled amid allegations of fraud at both firms. A fund tied to the bank is also locked in a legal fight with bankrupt restaurant chain owner Fat Brands Inc., while Jefferies has emerged as a backer to failed UK mortgage lender Market Financial Solutions Ltd.