Bear Stearns (NYSE:BSC)
Historical Stock Chart
From Jun 2019 to Jun 2024
On June 2, 2008, Wolf Haldenstein Adler Freeman & Herz LLP filed 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. §§ 78j(b)
and 78t(a)] and Rule 10b-5 promulgated
thereunder by the SEC [17 C.F.R. §
240.10b-5] (the “Class”).
The case name is styled Bransbourg v. The
Bear Stearns Companies, Inc., et al. A copy of the complaint
filed in this action is available from the Court, or can be viewed on
the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.
Bear Stearns proudly promoted a culture of circled wagons –
“an us against them camaraderie ingrained in
the belief that Bear Stearns’ employees
success was not based on their birthright or pedigree, but a superior
work ethic.” As part of the effort to unify
the employees and mold a particular culture, the Company paid a
significant portion of its employees’
compensation in Company Stock. Some estimates indicate that nearly
one-third of the firm is employee owned (as of March 17, 2008). These
same employees suffered at least a $5 billion loss over the last year as
the Company’s stock plunged and then was
acquired by JP Morgan Chase & Co. [NYSE:JPM]
at the rock bottom price of $10 per share.
The Complaint alleges that throughout the Class Period, defendants
issued numerous positive, but false or misleading press releases,
statements and financial reports filed with the SEC that purported to
describe Bear Stearns’ financial performance
and results. These statements were materially false and misleading and,
as a result, Bear Stearns stock traded at artificially inflated prices
during the Class Period, reaching a high of $171.51 per share in January
2007.
Beginning in late June 2007, however, Bear Stearns’
efforts to deceive the investing public began to unravel. In late June, the
Wall Street Journal reported that the SEC commenced an inquiry into
a Bear Stearns operated hedge fund that invested in credit instruments.
That fund, as well as another, ultimately filed for bankruptcy
protection.
Bear Stearns nonetheless continued to misrepresent and downplay the
seriousness of its problems. On August 3, 2007, the Company issued a
press release that tried to put a positive spin on Standard & Poor’s
decision to change the Company’s outlook
premised upon concerns with the Company’s “BSAM”
hedge funds.
On August 5, 2007, the Company announced a management shake-up that
included the ouster of defendant Warren Spector.
On January 4, 2008, Reuters reported that the U.S. Attorney’s
Office for the Eastern District of New York was interviewing investors
in the two failed Bear Stearns’ hedge funds.
On March 10, 2008, information began to leak into the market about Bear
Stearns’ liquidity problems, causing Bear
Stearns Stock to drop $7.98, to close at $62.30 per share. On the same
day, MarketWatch reported on how Bear Stearns’
executives began to “spin”
the Company’s crisis into a non-event that
they could control absent extraordinary measures. Despite defendant Alan
Greenberg’s efforts, the article went on to
discuss how ratings agencies were viewing the situation and how the
Company’s liquidity position was under
pressure.
On March 12, 2008, Bear Stearns’ President
Alan Schwartz, also a defendant in this action, reaffirmed Bear Stearns’
financial position and liquidity by stating that Bear Stearns has more
than $17 billion in excess cash on its balance sheet. He also affirmed
Bear Stearns’ book value of $80 per share and
further indicated that analysts’ estimates of
substantial profits for the most recently ended quarter were accurate.
On March 13, 2008, however, after the market closed news broke that Bear
Stearns was forced to seek emergency financing from the Federal Reserve
and J.P. Morgan Chase.
On Sunday, March 16, 2008, J.P. Morgan announced that it reached an
agreement to purchase Bear Stearns for $2 per share, or about $236
million.
If you received Bear Stearns Restricted Stock Units or CAP Units during
the Class Period, you may request that the Court appoint you as lead
plaintiff before August 19, 2008. A lead plaintiff is a representative
party that acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court must
determine that the class member’s claim is
typical of the claims of other class members, and that the class member
will adequately represent the class. Under certain circumstances, one or
more class members may together serve as “lead
plaintiff.” Your ability to share in any
recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Wolf Haldenstein, or other
counsel of your choice, to serve as your counsel in this action.
Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and federal
trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas; and offices in
Chicago, New York City, San Diego, and West Palm Beach. The reputation
and expertise of this firm in shareholder and other class litigation has
been repeatedly recognized by the courts, which have appointed it to
major positions in complex securities multi-district and consolidated
litigation.
If you wish to discuss this action or have any questions, please contact
Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New
York, New York 10016, by telephone at (800) 575-0735 (Daniel W. Krasner,
Esq., Gregory M. Nespole, Esq., Malcolm T. Brown, Esq. or Derek Behnke),
via e-mail at classmember@whafh.com
or visit our website at www.whafh.com.
All e-mail correspondence should make reference to Bear Stearns.