Bear Stearns is being sued by four securities litigation law firms that are representing institutional and retail customers in the sub-prime mortgage hedge funds that recently closed up shop.
The two funds are the Bear Stearns High Grade Structured Credit Strategies Master Fund and the High Grade Structured Credit Strategies Enhanced Leverage Master fund. Last month, the two funds filed for bankruptcy protection in the Southern District of New York, wiping out nearly all investor capital.
Aidikoff, Uhl & Bakhtiari, Maddox Hargett & Caruso, P.C., David P. Meyer & Associates Co., and Page Perry are the four firms representing investors. “This team of attorneys provides small investors and financial institutions alike with local representation across the county,” said Mark Maddox, a former Indiana Securities Commissioner, and a partner at Maddox, Hargett & Caruso.
“Bear Stearns told its clients that funds were backed by fixed income securities of which 90% of the portfolio were AAA to AA-rated by Standard & Poor’s,” Maddox said. “The collapse of the Bear Stearns funds over the last couple of months is stunning.”