Bear Stearns, former CEO James Cayne and other company officials reached a $275 million settlement with investors in a federal securities class action lawsuit that claimed the investment bank misled investors about its exposure to subprime mortgages.
The $48.1 billion Michigan Retirement Systems is lead plaintiff in the suit, originally filed in August 2008 in U.S. District Court in New York. The settlement was filed with the court on June 6.
The pension fund lost $62 million from its Bear Stearns investment, the largest amount among the plaintiffs in the class, according to court documents.
Terry Stanton, spokesman at Michigan Retirement Systems, wrote in a statement that the pension fund is “pleased to have reached a settlement with Bear Stearns and other defendants in this matter,” and hopes the agreement will be approved.
Categories: Class Actions of Interest