A group of shareholders of Bear Stearns Companies Inc, the beleaguered US investment bank in the wake of the subprime crisis, has agreed to settle a nationwide lawsuit with the company's senior executives for approximately $275 million, bringing an end to an almost four-year old dispute.
The lawsuit launched in 2008 by the State of Michigan Retirement Systems on behalf of the investors, had charged the executives of the Bear Stearns for misleading shareholders about its business and deteriorating financial condition at the onset of the financial crisis.
The suit was settled on Wednesday at the Manhattan federal court, as the former long-time chief executive of Bear Stearns James Cayne and his successor Alan Schwartz, have agreed to pay the claim of $275 million.
Other Bear Stearns executives involved in the agreement include Warren Spector, Alan Greenberg, Samuel Molinaro, Michael Alix and Jeffrey Farber.
The proposed settlement covers holders of Bear Stearns' shares during the period form 14 December 2006 to 14 March 2008.
The settlement has to be approved by the New York federal judge.