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Case Status:    SETTLED
On or around 03/04/2016 (Ongoing date of last review)

Filing Date: March 17, 2008

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.

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.

On January 05, 2010, an opinion by the court appointed lead plaintiff and lead counsel in this case.

On February 27, 2009, a Consolidated Class Action Complaint For Violations Of The Federal Securities Laws was filed with the court.

On January 19, 2011, the Court issued an opinion denying the defendants’ motion to dismiss the securities claim, but dismissed the ERISA and derivative claims.

On June 21, 2012, an Order Granting Preliminary Approval of Partial Class Action Settlement With Deloitte, Approving Form and Manner of Notice, and Setting Date for Hearing on Final Approval of Settlement was issued by the Court.

On November 9, 2012, a Memorandum and Opinion granted the settlement and approved the Plan of Allocation.

On November 13, 2012, an Order was issued by the Court granting the awarding Attorneys' Fees and Reimbursement of Expenses.

On November 28, 2012, the Court issued an Order awarding Attorneys' fees and expenses to co-lead counsel as to the Bear Stearns Settlement. On the same date, the Court also issued an Order awarding Attorneys' fees and expenses to co-lead counsel as to the Deloitte Settlement. In addition, the Court approved plans of allocation of settlement proceeds as to the Deloitte Setttlement and the Bear Stearns Settlement. Finally, the Court issued Final Order and Judgments settling this action as to Deloitte and the Bear Stearns Defendants.

COMPANY INFORMATION:

Sector: Financial
Industry: Investment Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BSC
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 08-CV-02793
JUDGE: Hon. Robert W. Sweet
DATE FILED: 03/17/2008
CLASS PERIOD START: 12/14/2006
CLASS PERIOD END: 03/14/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, 42 Street)
    60 East 42 Street, Abraham, Fruchter & Twersky (New York, 42 Street), NY 10021
    212.687.6655 ·
  2. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  3. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 08-CV-02793
JUDGE: Hon. Robert W. Sweet
DATE FILED: 02/27/2009
CLASS PERIOD START: 12/14/2006
CLASS PERIOD END: 03/14/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (CA)
    425 California Street, Suite 2025, Berman DeValerio Pease Tabacco Burt & Pucillo (CA), CA 94104
    415.433.3200 415.433.6382 ·
  2. Berman, DeValerio & Pease LLP
    One Liberty Square, Berman, DeValerio & Pease LLP, MA 02109
    617.542.8300 ·
  3. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date
No Document Title Filing Date