Posted On: October 31, 2008

BofA Sues Bear Stearns For Hedge Fund Blow Up

Bank of America Corp on Wednesday sued Bear Stearns and two former hedge fund managers who were indicted in June in the first major federal case stemming from the subprime mortgage crisis.

The lawsuit in U.S. District Court in Manhattan accused Bear Stearns, which was sold in March to JPMorgan Chase & Co., and three of its officers of "egregious misconduct" in a $4 billion transaction structured and marketed by Bank of America and other financing transactions in 2007.

It named Ralph Cioffi and Matthew Tannin, the former managers who were charged on June 19 with conspiracy and securities fraud related to the demise of their two funds. The pair were also charged by the Securities and Exchange Commission.

In May 2007, Bank of America, at the request of Bear Stearns Asset Management, structured and marketed a $4 billion transaction known as a "CDO-squared", the suit said. A CDO is a collateralized debt obligation, and the transaction involved mortgage-backed assets pooled and structured to support the sale of certain securities.

The lawsuit said that over several months Bear Stearns and its employees, including the three named in the complaint, concealed substantial withdrawal requests from Bank of America, hedge fund investors and other creditors.

For additional information or to further discuss these matters, investors should contact either:

Scott L. Silver, Esq.
Blum Law Group
1-877-STOCK LAW (1-877-786-2552)
www.stockattorneys.com

Blum Law Group is a nationally-recognized securities law firm headquartered in South Florida, with a satellite office in New York, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against the country’s top brokerage houses.

Bookmark and Share

Posted On: October 21, 2008

NOTICE TO ALL UBS CLIENTS WHO PURCHASED LEHMAN STRUCTURED NOTES AND LEHMAN PREFERRED SHARES

The securities law firms Blum Law Group (www.stockattorneys.com) and Sallah & Cox, LLC (http://www.sallahcox.com) announce that they have been retained to represent investors who suffered losses at UBS as a result of losses in Lehman notes and Lehman preferred shares.

These securities were typically recommended as safe investments. However, many investors allege they were not warned of the risk and suffered extraordinary losses as a result. Blum Law Group and Sallah & Cox, LLC are pursuing arbitration claims before the Financial Industry Regulatory Authority (“FINRA”) on behalf of aggrieved investors, including claims of misrepresentation, omissions of material facts, unsuitability, and negligence.

We believe investors will achieve better results on their claims through individual arbitration claims rather than through the class action process.

For additional information or to further discuss these matters, investors should contact either:

Scott L. Silver, Esq.
Blum Law Group
1-877-STOCK LAW (1-877-786-2552)
www.stockattorneys.com

James D. Sallah, Esq.
Sallah & Cox, LLC
1-888-SEC- ATTY (1-888-732-2889)
http://www.sallahcox.com/

Blum Law Group is a nationally-recognized securities law firm headquartered in South Florida, with a satellite office in New York, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against the country’s top brokerage houses.

Sallah & Cox, LLC is located in Boca Raton, Florida. The firm consists of former SEC Enforcement attorneys who represent clients throughout the United States and Latin America in stockbroker misconduct and investment fraud cases. This firm has represented investors against most major Wall Street brokerage firms in claims involving stocks, options, auction rate securities, hedge funds, mutual funds, and bonds.

Blum & Silver’s and Sallah & Cox, LLC’s attorneys speak English and Spanish, and they are licensed to practice law in Florida, Colorado, New York and New Jersey.