NEWS

Gardy & Notis, LLP has been appointed by the Court as lead counsel for holders of the limited partnership interest in the Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage, L.P. The case sought to recoup damages for breaches of fiduciary duty and/or aiding and abetting breaches of fiduciary duty against Bear Stearns Asset Management Inc., The Bear Stearns Companies Inc., Bear, Stearns & Co. Inc., and the directors and portfolio managers of the fund during the period beginning on August 1, 2006 (when the fund started) and concluding on July 18, 2007 (when the fund collapsed). The case alleged that defendants breached their fiduciary duty to the fund by permitting investments inconsistent with the terms of the fund's governing documents, failing adequately to analyze and assess the credit risks of investments, assigning inflated values to assets of the fund, and permitting principal trades with related entities without required approvals by independent directors.

Gardy & Notis, LLP achieved a settlement on behalf of holders of the Fund whereby each investor would receive a payment in an amount equal to 30% of their net contributions to the fund, plus 8% of any profits rolled-over from a predecessor fund, for a total consideration of $18.148 million, with attorneys' fees paid by defendants (and not deducted from the settlement). The Court approved the settlement on March 29, 2012.

The case is FIC, L.P. v. Bear Stearns Asset Management Inc., et al., No. 07 Civ. 11633 (AKH), in the United States District Court for the Southern District of New York.