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Bear Stearns Withheld Details on Financial Condition, Judge Says

  • Shareholder suit over 2008 Bear collapse allowed to proceed
  • ‘Active attempt to hide facts’ cited in sharply worded ruling

A federal judge sharply criticized statements and actions by former executives of Bear Stearns Cos in the final days of the investment bank, saying important information was “withheld from the public” and allowing a shareholder lawsuit to move forward.

In a 59-page ruling released Monday, U.S. District Judge Robert Sweet rejected Bear Stearns’s effort to dismiss the case, which also names ex-chief executive James Cayne, ex-co president Warren Spector and accounting firm Deloitte & Touche LLP as defendants.