Court Vacates Bear Stearns Shareholder Settlement

Law360 (December 20, 2007, 12:00 AM EST) -- An appeals court has revived a class action against Bear, Stearns & Co. after overturning a federal judge's order granting settlement with shareholders who implicated the broker in a fraud scheme that led to the collapse of now-defunct securities firm Sterling Foster & Co.

The U.S. Appeals Court for the Second Circuit vacated the settlement and returned the case to the lower court, ruling Wednesday that the settlement was reached before sufficient inquiry into evidence of Bear Stearns' wrongdoing and is, accordingly, unfair.

The case was...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.