Bear Stearns shareholders file suit

Investors in Bear Stearns Cos. have requested a restraining order to block J.P. Morgan Chase & Co.'s takeover. Wayne County Employees Retirement System of Michigan, the Police and Fire Retirement System of Detroit and the Greek Orthodox Archdiocese Foundation of New York have filed complaints so far.

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Were Bear a commercial bank, the Fed could have seized it and left shareholders with nothing. But because Bear isn't a commercial bank, the Fed had to force a swift auction of the company. Most likely the Delaware courts are going to look at the lawsuit, but consider this an extraordinary situation in which J.P. Morgan did what it had to do to get the shareholder votes it needed to save a collapsing company. Chances are the Delaware courts will avoid getting involved in J.P. Morgan's takeover. - David Marcus and Maria Woehr

See Detroit pension's legal complaint (pdf)
See TheDeal.com: Bear should expect no sympathy
See TheDeal.com: New bid to satisfy Bear shareholders?
See Dealscape: Bear Stearn shareholders want more
See Dealwatch: Bear Stearns

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