NEW YORK, April 15, 2008 (PRIME NEWSWIRE) -- Employees and investors of The Bear Stearns Companies, Inc. (NYSE:BSC) were dealt another setback on news that profit fell 79% in the company's fiscal first quarter and that there would likely be impairment charges taken by the company in the second quarter. On Friday after the market closed, Bear Stearns disclosed that it will incur about $288 million in charges in the second quarter tied to write-downs in goodwill and losses tied to a municipal bond program. Bear Stearns stock price closed at $10.11 per share yesterday afternoon. Just one year ago, Bear Stearns stock traded at just under $160 per share.
Class action litigation has commenced in the U.S. District Court for the Southern District of New York on behalf of the Bear Stearns Companies, Inc. Employee Stock Option Plan and all plan participants against Bear Stearns for violations of the Employee Retirement Income Security Act (ERISA). The lawsuits allege that Bear Stearns, as plan fiduciary, allowed imprudent investment of plan assets into Bear Stearns common stock despite the fact that the company knew that such investment was unduly risky and no longer appropriate for Bear Stearns employees. In the wake of the company's liquidity problems and subsequent sell-off, the Bear Stearns ESOP has suffered substantial losses.
If you are an employee of Bear Stearns and wish to discuss this matter or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com), (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com, for more information. There is no cost or fee to you.
Scott+Scott is a law firm with significant experience in prosecuting investor and employee class actions. The firm currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States and represents pension funds, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/