SOURCE: Klayman & Toskes

June 16, 2008 09:14 ET

Notice to All Investors of the Bear Stearns High-Grade Structured Credit Strategies and High-Grade Structured Credit Strategies Enhanced Leverage Funds From the Law Firm of Klayman & Toskes

NEW YORK, NY--(Marketwire - June 16, 2008) - The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") ( announced today that investors who lost money in Bear Stearns' High-Grade Structured Credit Strategies and High-Grade Structured Credit Strategies Enhanced Leverage Funds ("the Bear Funds") should consider all of their legal options. Klayman & Toskes is continuing its investigation of the Bear Funds following a recent announcement that criminal charges against former Bear Stearns Managers Ralph Cioffi and Matthew Tannin may be imminent.

Several class actions and arbitration claims have already been filed against Bear Stearns for losses sustained in the Bear Funds. However, in light of the potential indictments against the Managers of the Bear Funds, investors who have not yet taken legal action should consider what recourse they have against Bear Stearns. Bear Stearns is now part of JP Morgan Chase & Co. (NYSE: JPM). Klayman & Toskes encourages investors of the Bear Funds to contact the Law Firm to discuss their legal options.

According to the Wall Street Journal, "[a]t issue is whether the managers intentionally misled investors by presenting a rosy picture of the funds at a time when they were privately communicating with colleagues about their worries over how the investment vehicles would ride out weakness in the mortgage market." If indictments against the Bear Stearns Managers are in fact handed down, it would represent the first criminal charges stemming from the credit crisis of 2007.

Combined, the Bear Funds had investor capital of about $1.56 billion. With this capital, and additional leverage taken out on the capital, Bear Stearns bet heavily on the market for subprime mortgages and invested in thinly traded collateralized debt obligations ("CDO"). Its gamble turned out to be wrong. As a result of the slumping U.S. housing market in 2007, the Bear Funds collapsed within a very short period of time, and investors lost about $1.9 billion.

Presently, Klayman & Toskes is processing claims against numerous brokerage firms due to the collapse of the CDO and credit markets. The claims primarily deal with the Auction Rate Securities crisis, CDO losses in hedge funds and other institutions, and losses in bond funds which were over-concentrated in the subprime and CDO markets.

Klayman & Toskes, an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms. If you wish to discuss this announcement or have information relevant to our claims, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at


Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.