http://www.centredaily.com/business/story/669521.html

 
Wolf Haldenstein Adler Freeman & Herz
LLP Commences Class Action Lawsuit on Behalf of the Bear Stearns
Companies, Inc. Restricted Stock Units and Cap Units Recipients

NEW YORK — On June 2, 2008, Wolf Haldenstein Adler Freeman & Herz LLP filed a
class action lawsuit in the United States District Court, Southern
District of New York, on behalf of all current and former employees of
The Bear Stearns Companies, Inc. ("Bear Stearns" or the "Company")
(NYSE:BSC) whose compensation, in part, was in the form of restricted
stock units ("Restricted Stock Units") and/or capital accumulation
plan units ("CAP Units"), issued to the current and former Bear
Stearns employees pursuant to the Company's Restricted Stock Unit Plan
(the "RSU Plan") and Capital Accumulation Plan (the "CAP Plan"), and
whose rights to either Restricted Stock Units and/or CAP Units were
vested, thus providing them a present entitlement to be paid and/or
credited an equivalent number of shares of Bear Stearns common stock
("Bear Stearns Stock" or "Company Stock") upon settlement at the end
of a deferral period between December 14, 2006 and March 14, 2008,
inclusive (the "Class Period"), against the Company and certain
officers and directors, alleging fraud pursuant to pursuant to
Sections 10(b) and 20(a) of the Exchange Act (15 U.S.C. ss.ss. 78j(b)
and 78t(a)) and Rule 10b-5 promulgated thereunder by the SEC (17
C.F.R. ss. 240.10b-5) (the "Class").

The case name is styled Bransbourg v. The Bear Stearns Companies,
Inc., et al. A copy of the complaint filed in this action is available
from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman
& Herz LLP website at www.whafh.com.

Bear Stearns proudly promoted a culture of circled wagons - "an us
against them camaraderie ingrained in the belief that Bear Stearns'
employees success was not based on their birthright or pedigree, but a
superior work ethic." As part of the effort to unify the employees and
mold a particular culture, the Company paid a significant portion of
its employees' compensation in Company Stock. Some estimates indicate
that nearly one-third of the firm is employee owned (as of March 17,
2008). These same employees suffered at least a $5 billion loss over
the last year as the Company's stock plunged and then was acquired by
JP Morgan Chase & Co. (NYSE:JPM) at the rock bottom price of $10 per
share.

The Complaint alleges that throughout the Class Period, defendants
issued numerous positive, but false or misleading press releases,
statements and financial reports filed with the SEC that purported to
describe Bear Stearns' financial performance and results. These
statements were materially false and misleading and, as a result, Bear
Stearns stock traded at artificially inflated prices during the Class
Period, reaching a high of $171.51 per share in January 2007.

Beginning in late June 2007, however, Bear Stearns' efforts to
deceive the investing public began to unravel. In late June, the Wall
Street Journal reported that the SEC commenced an inquiry into a Bear
Stearns operated hedge fund that invested in credit instruments. That
fund, as well as another, ultimately filed for bankruptcy protection.

Bear Stearns nonetheless continued to misrepresent and downplay
the seriousness of its problems. On August 3, 2007, the Company issued
a press release that tried to put a positive spin on Standard & Poor

On August 5, 2007, the Company announced a management shake-up
that included the ouster of defendant Warren Spector.

On January 4, 2008, Reuters reported that the U.S. Attorney's
Office for the Eastern District of New York was interviewing investors
in the two failed Bear Stearns' hedge funds.

On March 10, 2008, information began to leak into the market about
Bear Stearns' liquidity problems, causing Bear Stearns Stock to drop
$7.98, to close at $62.30 per share. On the same day, MarketWatch
reported on how Bear Stearns' executives began to "spin" the Company's
crisis into a non-event that they could control absent extraordinary
measures. Despite defendant Alan Greenberg's efforts, the article went
on to discuss how ratings agencies were viewing the situation and how
the Company's liquidity position was under pressure.

On March 12, 2008, Bear Stearns' President Alan Schwartz, also a
defendant in this action, reaffirmed Bear Stearns' financial position
and liquidity by stating that Bear Stearns has more than $17 billion
in excess cash on its balance sheet. He also affirmed Bear Stearns'
book value of $80 per share and further indicated that analysts'
estimates of substantial profits for the most recently ended quarter
were accurate.

On March 13, 2008, however, after the market closed news broke
that Bear Stearns was forced to seek emergency financing from the
Federal Reserve and J.P. Morgan Chase.

On Sunday, March 16, 2008, J.P. Morgan announced that it reached
an agreement to purchase Bear Stearns for $2 per share, or about $236
million.

If you received Bear Stearns Restricted Stock Units or CAP Units
during the Class Period, you may request that the Court appoint you as
lead plaintiff before August 19, 2008. A lead plaintiff is a
representative party that acts on behalf of other class members in
directing the litigation. In order to be appointed lead plaintiff, the
Court must determine that the class member's claim is typical of the
claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or
more class members may together serve as "lead plaintiff." Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. You may retain
Wolf Haldenstein, or other counsel of your choice, to serve as your
counsel in this action.

Wolf Haldenstein has extensive experience in the prosecution of
securities class actions and derivative litigation in state and
federal trial and appellate courts across the country. The firm has
approximately 70 attorneys in various practice areas; and offices in
Chicago, New York City, San Diego, and West Palm Beach. The reputation
and expertise of this firm in shareholder and other class litigation
has been repeatedly recognized by the courts, which have appointed it
to major positions in complex securities multi-district and
consolidated litigation.

If you wish to discuss this action or have any questions, please
contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison
Avenue, New York, New York 10016, by telephone at (800) 575-0735
(Daniel W. Krasner, Esq., Gregory M. Nespole, Esq., Malcolm T. Brown,
Esq. or Derek Behnke), via e-mail at classmember@whafh.com or visit
our website at www.whafh.com. All e-mail correspondence should make
reference to Bear Stearns.

Wolf Haldenstein Adler Freeman & Herz LLP
Daniel W. Krasner, Esq.
Gregory M. Nespole, Esq.
Malcolm T. Brown, Esq.
Derek Behnke
(800) 575-0735
classmember@whafh.com
www.whafh.com