NEW YORK–(BUSINESS WIRE)–Four plaintiffs securities litigation law firms have joined together to represent institutional and retail customers of Bear Stearns and purchasers of Bear Stearns Companies, Inc.’s (NYSE – BSC) sub-prime mortgage hedge funds which have recently collapsed. The funds are the Bear Stearns High Grade Structured Credit Strategies Master Fund and the High Grade Structured Credit Strategies Enhanced Leverage Master fund.
On July 31, 2007 the two Bear Stearns hedge funds filed for bankruptcy protection in the Southern District of New York wiping out nearly all investor capital.
“This team of attorneys provides small investors and financial institutions alike with local representation across the country,” said Mark Maddox, a former Indiana Securities Commissioner, and partner in Maddox, Hargett & Caruso. “The team has significant experience in individual, multi-party and class cases and are dedicated to representing investors in an effort to make them whole.
“Bear Stearns told its clients that the funds were backed by fixed income securities of which 90% of the portfolio were AAA to AA- rated by Standard and Poors,” Maddox continued. “The collapse of the Bear Stearns funds over the last couple of months is stunning.”
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.