Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp.

Latest Action: On February 4, 2009, the SEC approved the plan of distribution, and appointed Rust Consulting, Inc. as Fund Administrator. Investors can obtain additional information by visiting http://www.bearstearnsfairfundsettlement.com. Investors should be aware that they will not be required to submit claim forms, and those mutual funds and shareholders eligible to receive a distribution will be paid directly. The SEC anticipates that distribution will begin in the summer of 2009.

Background: On March 16, 2006, the SEC instituted and settled administrative and cease-and-desist proceedings against Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp. The SEC alleged that Bear Stearns facilitated unlawful late trading and deceptive market timing of mutual funds by its customers and customers of its introducing brokers.

As part of the settlement, the respondents paid $250 million, consisting of $160 million in disgorgement and $90 million in civil penalties for distribution to the mutual funds and shareholders harmed as a result of market timing and late trading. For more information on the SEC’s action, you can read In the Matter of Bear, Stearns & Co., Inc. and Bear, Stearns Securities Corp., 33-8668 (Mar. 16, 2006).

http://www.sec.gov/divisions/enforce/claims/bearstearns.htm