NY Court Tosses Shareholder Suit V. Bear Stearns

Law360, New York (December 5, 2008, 12:00 AM EST) -- Writing that the court would not “second guess” Bear Stearns Cos. Inc.'s decision to sell itself to JPMorgan Chase & Co. rather than face bankruptcy, a state judge has dismissed a shareholder suit accusing the defunct bank of breaching its fiduciary duty by accepting the buyout deal.

Judge Herman Cahn of the Supreme Court of the State of New York in Manhattan on Thursday signed an opinion and order granting summary judgment in favor of Bear Stearns and dismissing the putative class action complaint.

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