A Manhattan federal judge has reinstated ERISA claims in the consolidated securities class action against Bear Stearns and related defendants. Southern District Judge Robert Sweet granted a motion Tuesday for reconsideration of a January opinion and leave to amend filed in February by interim co-lead class counsel for the ERISA plaintiffs from Keller Rohrbach and Kessler Topaz Meltzer & Check.

Judge Sweet ruled that a proposed new complaint in In re Bear Stearns Companies ERISA Litigation, 07 civ. 10453, by the plaintiffs appeared to address fatal shortcomings in their earlier filings, and that “the revelation of new evidence” weighed in favor of allowing them to re-plead. The proposed new complaint adds details gleaned from the Financial Crisis Inquiry Commission’s January 2011 report and includes specific allegations that Bear Stearns executives knew the company was suffering from its exposure to risky mortgage assets, its reliance on short-term funding, and high leverage by at least the spring of 2007. The amended complaint “appears to have addressed the fiduciary duties of Defendants and the reasonableness of maintaining Bear Stearns stock in the Employee Stock Ownership Plan,” Judge Sweet ruled. “Defendants’ arguments regarding the viability of the SACC are better left for full argument and consideration on a motion to dismiss.”

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