Bear Stearns lawsuits filed due to fraudulent misrepresentations
Following the financial collapse of one of the largest investment banks, many investors are pursuing Bear Stearns lawsuits to recover losses caused by fraudulent misrepresentations made by the company. As Bear Stearns stock prices fell amid concerns that the bank may fail, false statements were made to mislead investors about the financial strength of the company. As a result, millions of dollars were lost by investors who purchased shares of Bear Stearns stock between March 12 and March 14.
>>INFORMATION: Bear Stearns Investor Lawsuits
The Los Angeles Times recently reported on a Bear Stearns lawsuit filed by billionaire H. Roger Wang, who claims he lost millions as a result of stock purchases between March 6 and March 14, 2008. On March 11, Wang indicates that he was told that Bear Stearns was financially sound and that the stock value should be around $85 per share. Brokers indicated that the depressed stock value was not justified and that it presented a great time for him to invest in Bear Stearns. Unfortunately, these false statements concealed the extremely poor and disastrous financial condition the investment back was in.
Similar decisions to purchase Bear Stearns stock were made by individual investors between March 12 and March 14 as a result of televised statements made by the bank’s CEO, Alan Schwartz. During a March 12th interview on CNBC, Schwartz dismissed speculation about Bear Stearns’ cash shortage and stated that reserves of $17 billion were sitting at the parent company level to provide a “cushion”. Days later the release of first quarter financial results were delayed and a Bear Stearns bailout was necessary to prevent the investment back from filing bankruptcy.
Other Bear Stearns lawsuits and class action claims have been filed by employees who claim that the investment bank executives violated the terms of the Employee Retirement Income Security Act (ERISA). The lawsuits claim that Bear Stearns permitted the aggressive investment of the participants’ money in the company’s stock, even though they knew of the serious mismanagement and improper business practices, including a concentration on high-risk, mortgage-backed and asset-backed securities and collateralized-debt obligations.
BEAR STEARNS INVESTMENT FRAUD LAWYERS
The fraud lawyers at Saiontz, Kirk & Miles, P.A. are investigating potential Bear Stearns Lawsuits for individuals who lost at least $10,000.00 as a result of stock purchases made between March 12, 2008 and March 14, 2008. As a result of clearly incorrect and misleading statements about the financial health of the investment bank, millions of dollars were lost by individuals who reasonably relied upon the representations. To determine if you, a friend or family member may be entitled to recover financial losses suffered following the Bear Stearns collapse, request a free consultation and claim evaluation.
