On June 2, 2008, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, Southern District of New York, on behalf of all current and former employees of The Bear Stearns Companies, Inc. (“Bear Stearns” or the “Company”) [NYSE:BSC] whose compensation, in part, was in the form of restricted stock units (“Restricted Stock Units”) and/or capital accumulation plan units (“CAP Units”), issued to the current and former Bear Stearns employees pursuant to the Company’s Restricted Stock Unit Plan (the “RSU Plan”) and Capital Accumulation Plan (the “CAP Plan”), and whose rights to either Restricted Stock Units and/or CAP Units were vested, thus providing them a present entitlement to be paid and/or credited an equivalent number of shares of Bear Stearns common stock (“Bear Stearns Stock” or “Company Stock”) upon settlement at the end of a deferral period between December 14, 2006 and March 14, 2008, inclusive (the “Class Period”), against the Company and certain officers and directors, alleging fraud pursuant to pursuant to Sections 10(b) and 20(a) of the Exchange Act [15 U.S.C. §§ 78j(b) and 78t(a)] and Rule 10b-5 promulgated thereunder by the SEC [17 C.F.R. § 240.10b-5] (the “Class”).

The case name is styled Bransbourg v. The Bear Stearns Companies, Inc., et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at www.whafh.com.

Bear Stearns proudly promoted a culture of circled wagons – “an us against them camaraderie ingrained in the belief that Bear Stearns’ employees success was not based on their birthright or pedigree, but a superior work ethic.” As part of the effort to unify the employees and mold a particular culture, the Company paid a significant portion of its employees’ compensation in Company Stock. Some estimates indicate that nearly one-third of the firm is employee owned (as of March 17, 2008). These same employees suffered at least a $5 billion loss over the last year as the Company’s stock plunged and then was acquired by JP Morgan Chase & Co. [NYSE:JPM] at the rock bottom price of $10 per share.

The Complaint alleges that throughout the Class Period, defendants issued numerous positive, but false or misleading press releases, statements and financial reports filed with the SEC that purported to describe Bear Stearns’ financial performance and results.