Napoli Bern Ripka, LLP Notice To Bear Stearns High Grade Investors

Recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel awarded over $3 million damages following the collapse of the Bear Stearns High Grade Structured Credit Fund and Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund (“Bear Funds”). The Bear Funds were highly leveraged hedge funds that purchased collateralized debt obligations (“CDOs”) backed primarily by risky subprime mortgages. Starting in its inception in 2003, the Bear Funds continuously reported positive monthly gains and was valued at approximately $16 billion at its height. By the beginning of 2007, however, the subprime mortgage backed securities market began to unravel and the Bear Funds began to yield negative returns. In fact, the market crashed so quickly that by July 2007 the Bear Funds had completely collapsed, and investors were informed that they suffered over $1.5 billion in losses.

Napoli Bern Ripka, LLP is currently investigating whether Bear Stearns Asset Management (“BSAM”) fraudulently and negligently supervised the Bear Funds. Specifically, Napoli Bern Ripka, LLP is determining whether investors were mislead due to various misstatements and omissions of material fact made by BSAM while in communication with its investors. The recent award of damages by a FINRA arbitration panel further supports the notion that BSAM made unsuitable recommendations to investors and violated the federal securities law.

If you invested in either the Bear Stearns High Grade Structured Credit Fund or the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund, Napoli Bern Ripka is interested in hearing from you. Please contact the stock fraud department at 212-267-3700.