Law Firms Extend Bear Hedge Fund Arbitration Case

Jun 5 2008 | 2:00am ET

A group of law firms suing Bear Stearns over one of its collapsed credit hedge funds has added to its arbitration case against the firm—now part of JPMorgan Chase—and a former fund manager.

The four firms filed additional arbitration claims against Bear with the Financial Industry Regulatory Authority. The firms filed their initial claims, regarding the High-Grade Structured Credit Strategies Fund, in December.

“Our investigation indicates that officials at Bear Stearns engaged in a concerted effort to conceal the true state of affairs at this hedge fund, for an extended period of time before it imploded and that the victims of this nefarious scheme included both individual investors and professional money managers from around the world,” Steven Caruso of law firm Maddox Hargett & Caruso, said.

The original claims dealt with the High-Grade Structured fund’s riskier sibling, the High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) Fund.

Last summer, both hedge funds filed for bankruptcy after being battered by the subprime credit crisis. Investors in the funds were left with little, if any, of their investments.

RELATED STORIES

Hedge Fund Investors File Legal Claims Against Bear Stearns
Legal Eagles Seek Clients For Bear Suits


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.