Deloitte & Touche agreed to pay $19.9 million to settle
claims by investors who lost money in the stock of JPMorgan Chase’s Bear
Stearns unit from 2006 to 2008, the good folks at Bloomberg report.
The settlement, which must be approved by a judge in
Manhattan federal court, resolves claims against Deloitte by a class of
shareholders claiming Bear Stearns, with the help of Deloitte, its auditor,
made misstatements about its financial condition. Bear Stearns shares dropped
after news became public about risky hedge funds and negative ratings-company
outlooks.
Bear Stearns, a New York-based investment bank, announced in
January 2008 that U.S. prosecutors were inquiring into the collapse of the
hedge funds. In March 2008 JPMorgan Chase announced it was buying Bear Stearns
for $2 a share.
Last week, Bear Stearns agreed to a settlement requiring it
to pay $275 million to investors to settle the litigation…
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