NEW YORK, May 16, 2008 (PRIME NEWSWIRE) -- Attorney Christopher Gray of the Law Office of Christopher J. Gray, P.C. in New York City (newcases@cjgraylaw.com) reminds investors who purchased the common stock of The Bear Stearns Companies, Inc. (NYSE:BSC) between December 14, 2006 and March 14, 2008, inclusive ("Class members"), that the deadline to file a motion to serve as Lead Plaintiff in the securities class action (U.S. District Court for the Southern District of New York Docket No. 08-CV-2866 (RWS)) is May 19, 2008. Any Class member may move the Court to be named lead plaintiff by timely filing papers at the U.S. Courthouse, 500 Pearl Street, New York, New York. The court-appointed Lead Plaintiff will be selected by the Court after consideration of the motions filed on or before May 19, 2008.
All Class members have the right to opt out of participating in the class action and file their own individual claims against Bear, Stearns. Additionally, investors who bought Bear, Stearns stock before December 14, 2006 and held same through March 2008, as well as investors who purchased Bear, Stearns securities other than common stock, may also be able to assert individual claims that are not included in the class action by filing their own individual lawsuits. Finally, employees of Bear, Stearns who incurred losses as a result of the drop in the value of Bear, Stearns stock may be entitled to assert certain claims under the Employee Retirement Income Security Act of 1974 (ERISA) that are not available to non-employee investors.
Bear, Stearns shareholders suffered staggering financial losses as the company's shares lost more than 90 percent of their value from March 13, 2008 to March 17, 2008. On March 13, 2008, Bear, Stearns announced it had received emergency financing from JPMorgan Chase and the Federal Reserve, triggering a dramatic selloff of the company's shares. The bailout news was followed by an announcement on Monday, March 17, 2008, that JPMorgan Chase would acquire Bear Stearns for $2.00 per share. On March 24, 2008 the companies announced that they had modified the merger agreement, with JP Morgan agreeing to offer to Bear, Stearns shareholders $10.00 per share.
The complaint in the class action charges Bear, Stearns and certain of its officers with violations of the federal securities laws and alleges that as a result of defendants' false and misleading statements concerning Bear, Stearns' financial status, Bear, Stearns stock traded at artificially inflated prices during the Class Period.
The Law Office of Christopher J. Gray, P.C. has represented investors in several opt-out securities lawsuits. Research shows that plaintiffs who file opt-out lawsuits and pursue their own cases are generally faring much better than the reported 2.2 percent average recovery obtained for investors in class action settlements in 2006. For example, in the recent AOL Time Warner securities litigation, many opt-out plaintiffs obtained recoveries far in excess of what they would have obtained had they remained class members. Indeed, Oakbridge Insurance Services reported that AOL Time Warner opt-out plaintiffs obtained recoveries that were between 6.5 and 50 times higher than what they would have received in the class action settlement. The University of California, one opt-out plaintiff in the AOL Time Warner litigation, estimated that its net recovery of $200 million was between 16 and 24 times the amount that it would have received through the class action case.
Law Office of Christopher J. Gray, P.C. is not court-appointed lead counsel and does not represent the plaintiffs in the class action, and this news release has not been ordered or approved by the Court. Investors who wish to remain members of the Class but do not wish to seek appointment as Lead Plaintiff need do nothing at the present time.
Investors seeking more information about their legal options in connection with the collapse of Bear, Stearns may contact Law Office of Christopher J. Gray, P.C. at the e-mail address, address, fax number, or telephone number below.