SOURCE: Klayman & Toskes

October 20, 2009 15:46 ET

The Securities Law Firm of Klayman & Toskes Expects That Investor Claims May Increase Following the Start of the Criminal Trial of Ralph Cioffi and Matthew Tannin

NEW YORK, NY--(Marketwire - October 20, 2009) - The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") ( announced today that claims against Bear Stearns on behalf of investors in Bear Stearns' High-Grade Structured Credit Strategies and High-Grade Structured Credit Strategies Enhanced Leverage Funds ("the Bear Funds") are expected to increase following the start of the criminal trial of the former managers of the Bear Funds, Ralph Cioffi and Matthew Tannin. (Bear Stearns is now a part of JPMorgan Chase (NYSE: JPM)). When the Bear Funds were liquidated in July 2007, investors lost more than $1 billion.

Last week, the criminal fraud trial of Ralph Cioffi and Matthew Tannin began in New York, with both the prosecution and defense presenting their opening statements. The U.S. government has charged Cioffi and Tannin with securities fraud, wire fraud, and conspiracy. Ralph Cioffi was also charged with insider trading.

Recently, an email authored by Matthew Tannin on November 23, 2006 was revealed where he made statements regarding his concerns over the Bear Funds, including the following: "As I sat in John's office I had a wave of fear set over me that the fund couldn't be run the way that I was 'hoping,' and that it was going to subject investors to 'blow up risk.' Spreads are tight and credit is only deteriorating. I was worried that this would all end badly and that I would have to look for work." The testimony and evidence that will be presented over the course of the criminal trial is particularly intriguing as it could provide additional supporting and corroborating evidence in the civil litigation and arbitrations currently pending against Bear Stearns on behalf of investors of the Bear Funds. Moreover, with this information coming to light, aggrieved investors of the Bear Funds who have not yet sued may now feel that the time is right to attempt to recover their losses.

As more and more information regarding the collapse of the Bear Funds and what management at Bear Stearns knew concerning the management of the Funds is revealed, K&T expects to see an increase in filings against Bear Stearns. "We expect the testimony and evidence that will be presented at the criminal trial to confirm what we have heard from investors who believe that Bear Stearns made misrepresentations and engaged in fraudulent conduct in connection with the Bear Funds," said Steven Toskes, a partner at Klayman & Toskes.

Retail and institutional investors who sustained losses in the Bear Funds can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It 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 sustained investment losses in the Bear Funds, 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.