Bear Stearns Investor Lawsuits
Following the sudden demise of Bear Stearns Cos., many investors are left holding shares that are worth about 90% less than the market value last week. Although the stock had been falling for a few weeks, statements made by CEO Alan Schwartz less than five days ago provided false reassurance to investors about the firm’s liquidity. The financial fraud lawyers at Saiontz, Kirk & Miles, P.A. are reviewing potential Bear Stearns investor lawsuits for individuals who purchased shares of the company’s stock between March 12th and 14th, in reliance upon statements by CEO Schwartz.
Bear Stearns is an 85 year old investment back which generated profits in excess of $2 billion in 2006. After a weekend of negotiations, JPMorgan Chase & Co. struck a deal backed by the Federal Reserve to buy Bear Stearns for about $2 per share to save the company from bankruptcy. This was a sharp drop off from the closing price on Friday March 14 of $30 per share.
Last Wednesday, Bear Stearns Chief Executive Alan Schwartz dismissed speculation about the investment bank’s cash shortage. He stated that Bear Stearns’s liquidity was strong, with cash reserves of $17 billion sitting at the parent company level to provide a “cushion”. Schwartz also indicated during a televised interview on CNBC that he was comfortable with earnings estimates made by financial analysts, reassuring potential investors in the company ahead of the earnings release scheduled for today.
The company canceled the release of first quarter results last night, and many investors are left with nearly worthless stock. The total sale price of $240 million is about one fifth of the estimated $1.2 billion office building Bear Stearns owns in midtown Manhattan.
For investors who purchased shares of Bear Stearns’s stock late last week, they may be entitled to a financial recovery based upon their reliance on the statements of CEO Alan Schwartz. Potential Bear Stearns investor lawsuits are being reviewed for individuals who purchased over $10,000 worth of stock between March 12, 2008 and March 14, 2008.
To determine if you or a family member may be entitled to recovery of investment losses, request a free consultation.
