Crash Of Bear Hedge Funds Spurs Liquidators' Suit

Law360, New York (April 8, 2008, 12:00 AM EDT) -- Bear Stearns Cos. and Deloitte & Touche LLP have reportedly been hit with a lawsuit from the liquidators of two Bear Stearns Cos. hedge funds that went bust last summer after making bad bets in the subprime mortgage market.

The lawsuit was filed Monday in the U.S. District Court for the Southern District of New York, alleging that the two funds were “never designed to withstand even a slight downtick in the housing market,” and that Bear hid that fact from investors, according to Bloomberg News....
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