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Four Law Firms Join to Sue Bear Stearns for Hedge Fund Losses

Business Wire

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.”