2nd Circ. Punts Class Action Over Bear Stearns Trades

Law360, New York (March 15, 2013, 7:04 PM EDT) -- Bear Stearns & Co. does not have to face a class action for providing clearing services to a brokerage that allegedly manipulated the market, the Second Circuit said Friday, reversing a loss for the firm.

Bear Stearns, now a part of JPMorgan Chase & Co., was too far removed from a fraud run by Sterling Foster & Co. to be held accountable for it, a panel of judges said in a written decision.

Sterling's key players have pled guilty to securities fraud for allegedly manipulating the...
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