The Bear Stearns Companies Inc.
On September 20, 2012, the Honorable Robert W. Sweet granted approval of Named Plaintiffs Motion for Final Approval of Settlement, Approval of Class Notice, Certification of Settlement Class and Approval of Plan of Allocation as well as the Motion for an Award of Attorneys’ Fees, Reimbursement of Expenses and Case Contribution Awards to Named Plaintiffs. The Settlement is now Final. The Net Proceeds of the Settlement Fund will be allocated to Settlement Class members pursuant to the Plan of Allocation. The distribution could take many months or more than a year; please be patient.
The Second Amended Consolidated Complaint was filed in the United States District Court Southern District of New York. The Complaint is on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of The Bear Stearns Cos. Inc. Employee Stock Ownership Plan (the “Plan”) and whose accounts included investments in Bear Stearns common stock.
Plaintiffs allege that Defendants breached their fiduciary duties to Plaintiffs and the Class members by:
- failing to prudently and loyally manage the Plan’s assets;
- failing to avoid conflicts of interest; and
- failing to monitor co-fiduciaries.
The Settlement provides for a payment of $10 million, net of expenses described in the Settlement Agreement, to the Plan for the benefit of the following Settlement Class:
(a) All Persons, who have been participants in The Bear Stearns Companies Inc. Employee Stock Ownership Plan, or the predecessors or successors thereto, at any time between August 1, 2007 and March 20, 2012 and whose accounts included investments in Bear Stearns stock, and (b) as to each Person within the scope of subsection (a) of Section 1.45 of the Settlement Agreement, his, her or its beneficiaries, alternate payees, Representatives and Successors in Interest; provided, however, that, notwithstanding the foregoing, the Settlement Class shall not include any of the Defendants or Immediate Family members of Defendants, except for Immediate Family, beneficiaries, alternate payees, Representatives or Successors in Interest who themselves are members of the Settlement Class with respect to their own Plan accounts.
If you have additional questions regarding the Bear Stearns ERISA Settlement, please visit the Settlement website at www.BearStearnsERISAsettlement.com or contact us via email or by calling (866) 905-8101.
Case and Settlement Documents