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Bear Stearns might have violated ERISA laws and lost its current and former employees millions of dollars in their company sposored retirement accounts.
Investigation Source
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Retirement Asset
- Investment Advisor Duties
Product or Service
- Retirement Plan
Injury Type
- Monetary Loss
Investigation Details
Investigation and pending class action lawsuit against Bear Stearns on behalf of current and former employees claiming the company violated ERISA laws concerning the management of the Employee Stock Ownership Plan (ESOP).
The class action lawsuit claims Bear Stearns invested heavily in the sub-prime mortgage market, a risky investment that fiduciaries should have shared with plan participants, and as a result participants suffered losses in the hundreds of millions of dollars. During the class period, December 14, 2006 until present, the company stock experienced a tremendous decline starting at $157.89 per share on December 14, 2006 and closing with a 98 percent drop on March 17, 2008 at only $3.17 before moving up to the $10 range on news of JPMorgan's increased offering price.
The class action lawsuit claims Bear Stearns invested heavily in the sub-prime mortgage market, a risky investment that fiduciaries should have shared with plan participants, and as a result participants suffered losses in the hundreds of millions of dollars. During the class period, December 14, 2006 until present, the company stock experienced a tremendous decline starting at $157.89 per share on December 14, 2006 and closing with a 98 percent drop on March 17, 2008 at only $3.17 before moving up to the $10 range on news of JPMorgan's increased offering price.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Bear, Stearns & Co., Inc. | Bear, Stearns & Co., Inc. is a division of JP Morgan Chase & Co. Bear Stearns was an investment bank. |