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Bear Stearns face $100m settlement case

Bear Stearns could be facing a $100 million settlement case from a dozen London based investors over concerns that it misrepresented advice and posed a risk to their investment.

According to reports from City AM, Jake Zamansky, the Wall Street Lawyer, has been hired by eight UK investors seeking compensation, and at least five more are expected to follow.

The investors want compensation for the millions they lost as a result of the sub-prime crisis.

Zamansky says that he is already representing 12 US parties and plans to file the case against Bear Stearns with the US Financial Industry Regulatory Authority in October.

Speaking to City AM Mr Zamansky said: "We believe that Bear Stearns misrepresented the risk to investment in place to mitigate losses, and from January to June 2007 misrepresented the performance of the fund to prevent a run on the bank."