Burned firm sues Bear Stearns

Bear Stearns is being sued over the now-infamous failure two of its hedge funds, published reports said.
AUG 08, 2007
By  Bloomberg
Bear Stearns is being sued over the now-infamous failure two of its hedge funds, published reports said. Navigator Capital Partners, an investment firm in Delaware, and one of the investors in Bear Stearns’ high-grade structured credit strategies fund, have filed a class action with the Supreme Court in New York, Financial News said. The claim accuses Bear Stearns Asset Management and a slate of executives of “neglecting to manage the fund in a manner that would minimize risk and control losses in connection with sub-prime mortgage backed securities,” Financial News reported. The plaintiffs alleged also that firm also failed to tell investors that they hadn’t fulfilled those management responsibilities. Ralph Cioffi, a senior managing director and founder of the fund; Matthew Tannin, also senior managing director and chief operating officer of the fund; and Raymond McGarrigal, a portfolio manager and managing director, have also been named as defendants in the suit, Financial News said. While the case would be the first U.S. court claim against Bear Stearns over the hedge funds, an investor has already filed an arbitration claim against the firm earlier this week (InvestmentNews, Aug. 1).

Latest News

Ashton Thomas-backed Amplify debuts QuantumRisk to help RIAs weather market shocks
Ashton Thomas-backed Amplify debuts QuantumRisk to help RIAs weather market shocks

"QuantumRisk, by design, recognizes that these so-called “impossible” events actually happen, and it accounts for them in a way that advisors can see and plan for," Dr. Ron Piccinini told InvestmentNews.

Turning conversations into clients: Attract prospects and gain new clients with these five strategies
Turning conversations into clients: Attract prospects and gain new clients with these five strategies

Advisors who invest time and energy on vital projects for their practice could still be missing growth opportunities – unless they get serious about client-facing activities.

Tax Foundation analysis highlights biggest OBBBA beneficiary states, counties
Tax Foundation analysis highlights biggest OBBBA beneficiary states, counties

The policy research institution calculates thousands in tax cuts for Washington, Wyoming, and Massachusetts residents on average, with milder reductions for those dwelling in wealth hotspots.

Meltdown of some Yieldstreet real estate funds raises eyebrows from financial advice industry
Meltdown of some Yieldstreet real estate funds raises eyebrows from financial advice industry

Yieldstreet real estate funds turned out to be far riskier than some clients believed them to be, according to CNBC.

RIA M&A activity hits record pace in H1 2025: Fidelity
RIA M&A activity hits record pace in H1 2025: Fidelity

The race to 100 transactions ended a month early this year, with April standing out as the most active month on record for RIA dealmaking.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.