In Re Bear Stearns — 1 Concealment, 3 Results

Law360, New York (March 17, 2011, 12:51 PM EDT) -- Surprising bad news about a company comes into the public markets. Investor reaction is immediate. Investors recalculate the company’s value and the stock price drops. Soon thereafter, the lawsuits begin. Investors bring actions under the federal securities laws claiming a failure of disclosure obligations. Other shareholders bring derivative actions claiming management breach of fiduciary duty and employees with pension plans invested in the company’s stock bring claims under the Employee Retirement Income Security Act.

These are different claims with different standards because of different duties to...
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