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Bear Stearns, Deloitte Sued Over Hedge Fund

By Mark H. Astarita, Esq.

The problems for Bear Stearns seem to keep on coming. After its fire sale to JP Morgan, today's news is that the liquidators of two of its hedge funds that collapsed last year, have filed suit against the company and its auditor, Deloitte & Touche seeking to recover over $1 billion in losses.The suit, filed in U.S. District Court in Manhattan, accuses Bear, the managers of the hedge fund, and Deloitte, of not living up to assurances that the funds were relatively safe and conservative investment vehicles.According to the Reuters article, the plaintiffs allege that the funds were not designed to withstand even a "slight downtick" in the housing market and that Bear Stearns "conceived, marketed and managed hedge funds that they knew would be viable so long as - but only so long as - the U...continue to full post

Full post as published by SECLaw.com on April 08, 2008 (boomark / email).