Defendant Name: Bear, Stearns & Co. Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: LR-18109

Document Details

Legal Case Name Securities and Exchange Commission v. Bear, Stearns & Co. Inc.
Document Name SEC Sues Bear Stearns for Research Analyst Conflicts of Interest; Firm to Settle with SEC, NASD, NYSE, NY Attorney General, and State Regulators
Document Date 28-Apr-2003
Document Format Civil Proceeding
Case Number 03-cv-02937
Federal District Court New York, Southern District of New York
Allegation Type Investment Advisers/Investment Companies
Document Summary According to the SEC: "The Securities and Exchange Commission announced today that it has settled charges against Bear, Stearns & Co. Inc., a New York-based brokerage firm and investment bank, arising from an investigation of research analyst conflicts of interest. This settlement, and settlements with nine other brokerage firms, are part of the global settlement the firms have reached with the Commission, NASD, Inc., the New York Stock Exchange, Inc. ("NYSE"), the New York Attorney General, and other state regulators. "

Disgorgement & Penalty Information

Resolutions
Enjoinment
Compliance Related Independent Consultant
Other Compliance Related Undertaking
Required to sever the links between research and investment banking

Related Documents:

comp18109 28-Apr-2003 Complaint
Complaint
According to the SEC: "From July 1, 1999 to June 30, 2001 (the "relevant period") certain research analysts at Bear Stearns were subjected to investment banking influences and conflicts of interest between supporting investment banking business and publishing objective research. In addition, research analysts at Bear Stearns were encouraged to participate in investment banking activities, and that was a factor considered in the analysts' compensation system. Bear Stearns also made a payment to another securities firm primarily for research coverage for an investment banking client."
judg18109 15-Aug-2003 Court Docket Document
Final Judgment as to Defendant Bear, Stearns & Co. Inc.
The Court stated: "Plaintiff Securities and Exchange Commission ("Commission") having tiled a Complaint in this action ("Complaint") and Defendant Bear, Steams & Co. Inc. ("Defendant") having (a) entered a general appearance, (b) consented to the Court's jurisdiction over Defendant and the subject matter of this action, (c) consented to entry of this Final Judgment without admitting or denyng the allegations of the Complaint (except as to jurisdiction), (d) waived findings of fact and conclusions of law, and (e) waived any right to appeal from this Final Judgment; and the Commission having agreed that, on the basis of this Final Judgment, it will not institute a proceeding against Defendant pursuant to Sections 15(b), 15B, 15C, or 19(h) of the Securities Exchange Act of 1934 (the "Exchange Act")."
LR-21457 19-Mar-2010 Litigation Release
Court Approves Modifications to Global Research Analyst Settlement
On March 19, 2010, the SEC published a litigation release announcing that the Honorable William H. Pauley issued an order approving modifications to the final judgments entered against Bear, Stearns & Co. Inc. and the other firms covered by the Global Research Analyst Settlement.
LR-26434_03-cv-02937 05-Dec-2025 Litigation Release
Global Research Analyst Settlement; SEC Consents to Termination of Undertakings in Global Research Analyst Settlement
On December 5, 2025, the SEC stated that: "[It] consented to modifications to the October 2003 . . . and September 2004 . . . final judgments against settling firms still covered by the Global Research Analyst Settlement, a global settlement of SEC and other enforcement actions against twelve investment banks and two individuals. The modifications are subject to court approval."
court_doc359_03-cv-02937 05-Dec-2025 Court Docket Document
Notice Regarding Defendants' Rule 60(b) Motion to Modify Addendum A of Global Research Settlement
The SEC stated: "[T]he Securities and Exchange Commission (SEC) consents to the relief sought by the motions and agrees that the final judgments should be modified as reflected in the proposed orders submitted by each respective Defendant. . . . Based on these unique facts and circumstances, the SEC believes modification of the Judgment is in the public interest."