NEW YORK, July 25, 2007 (PRIME NEWSWIRE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that its investigation into Bear Stearns' (NYSE:BSC) High-Grade Structured Credit Strategies Fund and High-Grade Structured Credit Strategies Enhanced Leverage Fund ("the Bear Funds") has taken an interesting turn. Just two days ago, K&T issued a statement regarding the Bear Funds. A few hours later, the firm received new information from an undisclosed source which may shed new light on the background of the Bear Funds, and may implicate Bear Stearns for violations far more serious than simple unsuitability and misrepresentation.
Based on recent articles in various media outlets, law firms are looking to sue Bear Stearns based on allegations of misstatements and misrepresentation. However, according to K&T's source, there may be more to the Bear Stearns subprime hedge fund debacle than meets the eye. Initial findings hint that investors may have claims against Bear Stearns for conflicts of interest within Bear Stearns regarding how the Bear Funds were started. Specifically, K&T is looking into who sold the subprime paper to Bear Stearns Asset Management ("BSAM"), and exactly how Bear Stearns may have benefited from creating two hedge funds concentrated in subprime products. Further, K&T is investigating what role, if any, Bear Stearns' research department may have played in the promotion of the Bear Funds. If you have any information regarding the establishment of the Bear Funds, please contact us.
In a very short period of time, investors have lost billions due to the losses sustained in the Bear Funds. Because of the collapse of the Bear Funds, K&T anticipates that it will be filing numerous claims on behalf of institutions and individuals who invested in these Funds. Moreover, as Federal Reserve Chairman Ben Bernanke has said that losses from the subprime mortgage fallout could reach $100 billion, K&T is also looking into the possibility of filing claims against other large brokerage firms who sustained losses in their mortgage-backed securities and subprime mortgage products.
In response to K&T's statement of July 23, 2007 regarding the Bear Funds, the firm has received inquiries and e-mails from as far away as Tokyo, Japan. K&T continues its representation of high-net worth investors throughout the world in securities litigation and arbitration matters, against major Wall Street brokerage firms for securities violations including misuse of margin, failure to supervise, unsuitability, misrepresentation and omission of material fact. If you wish to discuss this announcement or have information relevant to our securities arbitration claims, please contact Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.