New York, NY: A $294 million settlement has been approved by a federal judge in settlements of securities and ERISA lawsuits against The Bears Stearns Cos. Inc. and certain of its former officers and directors, and the company's former outside auditor. The federal judge ruled that the settlements are procedurally and substantively fair (In re Bear Stearns Companies Inc. Securities, Derivative, and ERISA Litigation, MDL No. 08-md-1963, No. 08-2793, S.D. N.Y.).
According to the terms of the settlements, U$ 275 million will be paid by current owner of The Bear Stearns Cos. JPMorgan Chase & Co. Inc., while another $ 20 million will be paid by former outside auditor Deloitte & Touche LLP, to settle claims that the defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 by misrepresenting Bear Stearns' exposure to the subprime mortgage lending crisis.
The judge also certified a class of all purchasers of Bear Stearns common stock from December 14, 2006, to March 14, 2008.
