Investor Lawyers Blog
Christopher J. Gray, P.C. filed a lawsuit on January 27, 2009 against JPMorgan Chase & Co. on behalf of an investor who incurred substantial losses in his trades in Bear, Stearns options between March 12 and 14, 2008- in the immediate aftermath of statements by the senior management of Bear, Stearns to the effect that its liquidity and balance sheet remained strong. The firm’s client sued JPMorgan Chase as successor in interest to Bear, Stearns, which it acquired in May 2008.
The plaintiff incurred his losses when the price of Bear, Stearns shares plummeted from $57.00 on March 13, 2008 to as low as $4.30 a share on March 17, 2008 as material adverse information concerning the Company’s liquidity, financial condition and book value emerged between March 14 and 17, 2008.
The case alleges that Bear, Stearns omitted to disclose important facts that had emerged and that Bear, Stearns management knew , including: