Lawyers Spar Over Bear Stearns Stockholder Suit

Law360, New York (April 28, 2010, 5:42 PM EDT) -- A federal judge is weighing whether Bear Stearns Cos. could possibly have had a duty to tell participants in an employee stock ownership plan to ditch their holdings in advance of the investment bank’s sudden collapse in 2008.

Judge Robert W. Sweet heard arguments Wednesday in the U.S. District Court for the Southern District of New York over whether to dismiss a consolidated suit brought by the plan participants, with the defendant’s lawyers arguing that it would be “extraordinary,” if not illegal, for the company to...
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