Bear Stearns settles securities class action for $275 million

June 20, 2012 by

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.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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