NEW YORK, April 15, 2008 (Lawfuel) — Employees and investors of
The Bear Stearns Companies, Inc. (NYSE:BSC) were dealt another setback
on news that profit fell 79% in the company’s fiscal first quarter and
that there would likely be impairment charges taken by the company in
the second quarter. On Friday after the market closed, Bear Stearns
disclosed that it will incur about $288 million in charges in the
second quarter tied to write-downs in goodwill and losses tied to a
municipal bond program. Bear Stearns stock price closed at $10.11 per
share yesterday afternoon. Just one year ago, Bear Stearns stock traded
at just under $160 per share.
Class action litigation has commenced in the U.S. District Court for
the Southern District of New York on behalf of the Bear Stearns
Companies, Inc. Employee Stock Option Plan and all plan participants
against Bear Stearns for violations of the Employee Retirement Income
Security Act (ERISA). The lawsuits allege that Bear Stearns, as plan
fiduciary, allowed imprudent investment of plan assets into Bear
Stearns common stock despite the fact that the company knew that such
investment was unduly risky and no longer appropriate for Bear Stearns
employees. In the wake of the company’s liquidity problems and
subsequent sell-off, the Bear Stearns ESOP has suffered substantial
losses.
If you are an employee of Bear Stearns and wish to discuss this matter
or have questions concerning this notice or your rights, please contact
Scott+Scott (scottlaw@scott-scott.com), (800) 404-7770, (860) 537-5537
or visit the Scott+Scott website, http://www.scott-scott.com, for more
information. There is no cost or fee to you.
Scott+Scott is a law firm with significant experience in prosecuting
investor and employee class actions. The firm currently is litigating
major securities, antitrust and employee retirement plan actions
throughout the United States and represents pension funds, foundations,
individuals and other entities worldwide.
