Litigation

Class Action Filed Against Bear Stearns in Delaware Seeking to Enjoin Acquisition by JPMorgan

By Morris James LLP

Last Thursday, a class action complaint was filed against Bear Stearns and its directors in the Court of Chancery.  The complaint alleges that the company has failed to maximize shareholder value by agreeing to be purchased by JPMorgan Chase for $2 per share.  The complaint further alleges that, by agreeing to the deal, the company has favored numerous constituencies over the shareholders.  You can access the complaint here.    

Update: The New York Times reports here that JPMorgan Chase raised its offer to $10 per share.  Professor Ribstein has commented here, along with Pileggi here. 

Full post as published by Delaware Business Litigation Report on March 24, 2008 (boomark / email).