SEATTLE, March 19, 2008 (PRIME NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP ("Hagens Berman") (www.hbsslaw.com/bsc) today announced it is investigating possible ERISA violations by the Bear Stearns Companies Inc. ("Bear Stearns" or the "Company") (NYSE:BSC) relating to the Employees Stock Ownership Plan ("ESOP").
The investigation comes after JPMorgan Chase & Co. announced it is purchasing Bear Stearns for $2 per share, 90 percent less than the 85-year-old firm's market value last week. The investigation is looking into whether fiduciaries of the Company's ESOP knew or should have known that Bear Stearns concealed its exposure to risky collateralized debt obligations, sub-prime mortgages and other poor-quality securities. If fiduciaries did not exhibit due diligence in protecting the ESOP participants' investments in Company stock and were aware of the extremely high-risk investments the company made, plan fiduciaries could be found in violation of ERISA laws.
Concerning possible ERISA violations, Hagens Berman Sobol Shapiro is looking at whether or not Bear Stearns continued to offer and hold company stock in the ESOP when it was no longer prudent to do so, and if the company failed to take action to sell Bear Stearns stock or otherwise protect the plan's assets in light of the company's risky business strategies and deteriorating financial condition.
Bear Stearns is headquartered in New York and is a leading global financial services firm serving governments, corporations and institutions nationwide. Bear Stearns specializes in institutional equities, fixed income, investment banking, asset management and more. In a company press release on March 16, 2008, the company announced that JPMorgan would acquire Bear Stearns and stocks could be transferred from Bear Stearns to JPMorgan based on the closing numbers from March 15, 2008. Bear Stearns stock tumbled from $30.00 per share on March 14 to $4.81 at closing on Monday, March 17, 2008.
If you have information concerning this investigation or if you have any questions about the investigation, please contact plaintiff's counsel, Steve Berman of Hagens Berman at 206/623-7292 or via e-mail at info@hbsslaw.com. You can view additional materials on this investigation at www.hbsslaw.com/bsc.
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of ERISA Plan participants and other defrauded investors, consumers, and companies, as well as victims of human rights violations. The firm was co-lead counsel in the Enron ERISA litigation, which recovered more than $220 million on behalf of former Enron employees who lost retirement savings in the Enron ESOP and 401(k) plans. The Hagens Berman Sobol Shapiro Web site (www.hbsslaw.com) has more information about the firm.