Bear Stearns Shareholder Settlement
A group of shareholders have settled their claims against Bear Stearns for a reported $275 million. This settlement is the latest against a string of defendants, mostly banks, where plaintiffs have settled their lawsuits for a large payday.
The lawsuit focuses on the plaintiffs claiming the bank hid their problems during their last year of existence and painted an overly rosy picture of their financial situation. The settlement covers all claims nationwide and includes investors who had common stock and call options. Some of the executives of Bear Stearns were named in the lawsuit, and this settlement covers them too.
The lawsuit was led by representatives of a Michigan pension fund, State of Michigan Retirement Systems, and the money will come from a fund set aside by J.P. Morgan Chase.
J.P. Morgan Chase bought Bear Stearns in 2008. Similar lawsuits were filed with some of Wall Street’s biggest banks, including Merrill Lynch and Washington Mutual, who settled their lawsuits for $475 million and $208.5 million, respectively. Countrywide Financial paid $600 million to settle their lawsuit.
About the Author:
Lulaine Compere is a writer and research analyst for RD Legal Funding, a New Jersey based lawsuit financing company. For more information about their post-settlement legal funding solutions, call them at 1-800-565-5177 or visit their website at legalfunding.com.