June 7, 2012 / 12:28 PM / 7 years ago

Bear Stearns $275 million settlement reached

James Cayne, former Chairman and CEO of Bear Stearns, puts his hand to his head as he testifies at a hearing held by the Financial Crisis Inquiry Commission in Washington May 5, 2010. REUTERS/Kevin Lamarque

(Reuters) - A $275 million settlement has been reached in a nationwide shareholder lawsuit stemming from the near-collapse of the former Wall Street investment bank Bear Stearns Cos, court papers show.

The settlement resolves claims that Bear, and several officials including former Chief Executive James Cayne, misled investors about the company’s deteriorating financial health before it was acquired by JPMorgan Chase & Co.

The lead plaintiff, the State of Michigan Retirement Systems, filed settlement papers on Wednesday night with the U.S. District Court in Manhattan, and is seeking preliminary court approval of the accord.

Reporting By Jonathan Stempel in New York; Editing by Gerald E. McCormick

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