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The Bear Stearns Companies Inc. Summary: On May 16, 2008, several motions to appoint certain groups as lead plaintiffs and the approval of their selection of lead counsels were filed. On July 08, 2008, a motion to consolidate cases was filed by State of Michigan Retirement System. Lastly, on August 19, 2008, a certified true copy of conditional MDL transfer in order from the MDL panel was entered. It is stated that the case to be transferred to the Southern District of New York and the case is assigned to the Honorable Robert W. Sweet for coordinated or consolidated pretrial proceedings with the actions pending in that district.
The original complaint charges Bear Stearns and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Bear Stearns, through its broker-dealer and international bank subsidiaries, provides investment banking, securities and derivatives trading, clearance, and brokerage services worldwide.
Specifically, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, Bear Stearns stock traded at artificially inflated prices during the Class Period, reaching a high of $159.36 per share in April 2007. In late June 2007, news about Bear Stearns’ risky hedge funds began to enter the market and its stock price began to fall. On March 10, 2008, information leaked into the market about Bear Stearns’ liquidity problems, causing the stock to drop to as low as $60.26 per share before closing at $62.30 per share. On March 13, 2008, news that Bear Stearns was forced to seek emergency financing from the Federal Reserve and J.P. Morgan Chase hit the market and Bear Stearns stock fell to $30 per share. Then, on Sunday, March 16, 2008, it was announced that J.P. Morgan Chase was purchasing Bear Stearns for $2 per share. By midday on Monday, March 17, 2008, Bear Stearns stock had collapsed another 85% to $4.30 per share on volume of 75 million shares.
According to the complaint, the Company’s Class Period statements were materially false due to defendants’ failure to inform the market of the problems in the Company’s hedge funds due to the deteriorating subprime mortgage market, which would cause Bear Stearns to have to rescue the funds, cause the Company and its officers possible criminal liability and hurt the Company’s reputation.
On June 2, 2008, a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all current and former employees of The Bear Stearns Companies, Inc. ("Bear Stearns" or the "Company") (NYSE:BSC) whose compensation, in part, was in the form of restricted stock units ("Restricted Stock Units") and/or capital accumulation plan units ("CAP Units"), issued to the current and former Bear Stearns employees pursuant to the Company's Restricted Stock Unit Plan (the "RSU Plan") and Capital Accumulation Plan (the "CAP Plan"), and whose rights to either Restricted Stock Units and/or CAP Units were vested, thus providing them a present entitlement to be paid and/or credited an equivalent number of shares of Bear Stearns common stock ("Bear Stearns Stock" or "Company Stock") upon settlement at the end of a deferral period between December 14, 2006 and March 14, 2008, inclusive (the "Class Period"), against the Company and certain officers and directors, alleging fraud pursuant to pursuant to Sections 10(b) and 20(a) of the Exchange Act (15 U.S.C. ss.ss. 78j(b) and 78t(a)) and Rule 10b-5 promulgated thereunder by the SEC (17 C.F.R. ss. 240.10b-5) (the "Class"). The case name is styled Bransbourg v. The Bear Stearns Companies, Inc., et al.
INDUSTRY CLASSIFICATION:
SIC Code: 6211
Sector: Financial
Industry: Investment Services
| COMPANY/ISSUER NAME: | The Bear Stearns Companies Inc. |
| COMPANY/ISSUER TICKER: | BSC |
| COMPANY WEBSITE: | http://www.bearstearns.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Eastside Holdings Inc., et al. v. The Bear Stearns Companies Inc., et al. | |||||||||||||||||
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| REFERENCE COMPLAINT | |||||||||||||||||
| Eastside Holding Inc. v. The Bear Stearns Companies Inc. et al | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Notice Of Motion Of The State Of Michigan Retirement Systems For Consolidation | |||
| Type: Motion | Date on the document: 7/8/2008 | ||
| US District Court Civil Docket | |||
| Type: Docket | Date on the document: 8/19/2008 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Aaron Howard, et al. v. The Bear Stearns Companies Inc., et al. | |||
| Type: Complaint | Date on the document: 03/17/2008 | ||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Razill C. Becher, et al. v. The Bear Stearns Companies Inc., et al. | |||
| Type: Complaint | Date on the document: 03/18/2008 | ||
| Class Action Complaint for Violation of the Federal Securities Laws - Demand for Jury Trial | |||
| Case Name and/or Number: Greek Orthodox Archdiocese Foundation et al. v. The Bear Stearns Companies Inc., et al. | |||
| Type: Complaint | Date on the document: 03/25/2008 | ||
| Class Action Complaint for Violation of the Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Gilles Bransbourg, et al. v. The Bear Stearns Companies Inc., et al. | |||
| Type: Complaint | Date on the document: 6/2/2008 | ||
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