State Retirement Boards Sue Bear Stearns

July 10, 2001 (PLANSPONSOR.com) - Four state employee retirement boards have sued Bear Stearns for its role as financial advisor in the McKesson/HBO & Co. merger.

In its quarterly report filed Monday with the Securities and Exchange Commission (SEC), Bear Stearns said the Utah State Retirement Board, the Public Employees’ Retirement Association of Colorado and the Minnesota State Board of Investment filed suit April 23 in the Superior Court of California, City and County of San Francisco, according to Dow Jones.

The State of Oregon filed a similar complaint in the Superior Court in San Francisco for the Oregon Public Employees Retirement Board on April 26.

San Francisco-based McKesson HBOC is a health-care supply management company.

Similar Suit

Bear Stearns said the complaints in the suits are similar to those alleged in a second amended consolidated complaint filed in November 2000 by a separate class of plaintiffs.

Those complaints allege Bear Stearns violated California corporate securities codes, and allege common law fraud and deceit, intentional misrepresentation, negligent misrepresentation, and aiding and abetting alleged breaches of fiduciary duty owed by former officers of HBOC and McKesson.

The plaintiffs are seeking unspecified compensatory and punitive damages.

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