Grizzly Bears

19 March 2008 By Lauren Silva

Even with JPMorgan’s new higher price for Bear Stearns, some aggrieved shareholders could still head to court. They could challenge the price, the merger agreement, apparent pay imbalances, and statements made by executives. They may have most luck with the last.

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On Monday, JPMorgan raised its offer for Bear Stearns from about $2 a share to about $10. On March 7, the shares closed above $70.

Last week, Bear Stearns's largest shareholder, billionaire investor Joseph Lewis, said he may push the company to consider alternatives to the deal with JPMorgan.

As of last week, eight law firms had either filed or announced plans to file class action lawsuits against Bear Stearns for breach of fiduciary duty following the bank's agreement to sell itself to JPMorgan, according to Financial News.

Bear Stearns was also sued by the Police and Fire Retirement System of the City of Detroit, which asked a judge to halt the planned buyout for $2.32 a share.

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