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The blowback from the $2 per share acquisition of Bear Stearns Cos. is building fast. Before the end of trade Monday, multiple lawsuits had been filed in the Manhattan courts, and there looks to be plenty more on the way.
A shareholder suit filed against Bear Stearns and its top brass including Bear Stearns chairman James Cayne and chief executive officer Alan Schwartz led the way. In a blog post, Kevin LaCroix, an attorney at OakBridge Insurance Services, took an in-depth look at the shareholder lawsuit. The attorneys for Joe Lewis, the British billionaire who is losing a cool $1 billion on the Bear Stearns deal, are also reportedly hard at work trying to block the sale and seeking alternatives like encouraging a white knight or voting flat out against the deal. Bear Stearns employees also sued the company and management after watching the value of their employee stock ownership plan disappear over the weekend. The suit alleges that Bear Stearns and its executives breached their fiduciary duties to plan participants by allowing their retirement savings to be invested in the company's stock despite knowing such an investment was imprudent. Considering the rock bottom price of the Bear Stearns sale, securities law firms smell a feast and are moving quickly. One of the early winners is Mark & Associates PC, which snagged the domain name bearstearnsinvestors.com in hopes of getting a head start on bringing disgruntled shareholders into a fraud case against Bear Stearns. Expect to see similar sites crop up as a number of other law firms put out press releases Monday saying they were investigating potential violations of the Employee Retirement Income Security Act of 1974. - George White See story about shareholder lawsuit from Dealscape CategoriesComments
From: Rowena Cherry,
What I'd like to know is the names of the institutions and individuals that participated in the run on the bank that caused this disaster.
Posted on:
March 19, 2008 8:29 AM
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Hi All –
I work with a law firm that is investigating Bear Stearns, and whether the company protected employees’ interests during the recent stock collapse. Many Bear Stearns employees saw their retirement accounts decimated by recent events, and some are questioning whether Bear Stearns acted appropriately.
Specifically the firm is looking into whether Bear Stearns lived up to its fiduciary duty to employees who held Bear Stearns stock as part of the company’s pension plan.
If you are a Bear Stearns employee and are concerned that the company’s actions hurt you or your pension plan, you may want to contact Hagens Berman Sobol Shapiro (www.hbsslaw.com/bsc or info@hbsslaw.com) to learn more about the investigation or call the firm at 206-623-7292.