Bear Stearns To Face IPO Price-Fixing Class Suit

Law360, New York (June 25, 2010, 1:36 PM EDT) -- A federal judge has certified a class of more than 2,000 former ML Direct Inc. shareholders who lost their investments as a result of an alleged price-fixing scheme operated by Sterling Foster & Co. Inc. and Bear Stearns Cos. Inc. during ML Direct’s initial public offering in the mid-1990s.

Judge Arthur Spatt of the U.S. District Court for the Eastern District of New York ruled Thursday that Bear Stearns had participated in the scheme and thus could be held liable for failing to disclose the $24...
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