Law Articles And Legal Issues

Sherman Law Firm Finds that Bear Stearns' Severance Agreements Include Potentially Costly Condition

New York, NY (PRWEB) May 21, 2008 -- The Sherman Law Firm has learned that Bear Stearns is using its severance agreements to extract litigation waivers from departing employees. Employees who sign these waivers will forever lose the right to sue Bear Stearns and other companies for almost any cause of action.

The Use and Impact of Litigation Waivers in Severance Agreements

By all accounts, Bear Stearns and JP Morgan are bracing for a tidal wave of litigation from (a) investors in Bear Stearns subprime hedge funds and other questionable investment products, and (b) Bear Stearns shareholders, including employee shareholders (who reportedly owned about one third of the company's common stock in mid-March 2008). Like all major litigation, Bear Stearns-related lawsuits will be expensive to defend in terms of both legal costs and potential liability.

Class action claims and individual lawsuits are being prepared by many law firms (including The Sherman Law Firm) against Bear Stearns on behalf of thousands of employee shareholders. By conditioning severance benefits on an employee's agreement to waive the right to sue, Bear Stearns will eliminate many Bear Stearns employees from contributing to the massive legal costs and high potential exposure of these employee-driven claims.

According to employment law experts, Bear's litigation waiver condition is not a unique strategy. Attorney Theresa M. Thompson of the Maryland Law Firm Fredrickson & Brown explains how businesses frequently use severance packages to obtain litigation waivers: "Employers have long offered severance benefits or enhanced severance payments in exchange for a release of all claims. This practice has always been considered a sound way to limit litigation, resolve possible disputes, and finalize the employment relationship." Similarly, on Bizriskadvice.com, Attorney Nancy Schess points out that a company "worried about a potential lawsuit, which translates to expense... [should offer severance benefits in order to have a departing employee sign a release, which is intended to keep the dispute from ever reaching a courtroom."

The Sherman Law Firm has spoken to many Bear Stearns employees who suffered Bear Stearns stock losses that are high enough to cause near term cash-flow concerns. These employees have confirmed that the decision of whether to (a) accept severance pay right now (albeit pay that is nowhere near the amount of their respective Bear Stearns stock losses), or (b) preserve the right to sue Bear Stearns / JP Morgan for far more money in a lawsuit that may not be resolved for several years (and which has no guaranteed outcome), is a difficult call. Most are angry and want to sue. Few, though, were willing to commit one way or the other.

Conclusion

The more employees that Bear Stearns can remove as a litigation threat now, the cheaper the road Bear Stearns and JP Morgan are likely to face as the companies move into the future. Only time will tell how well Bear's decision to dangle near-term cash payments and other incentives to entice Bear Stearns employees to sign away the right to sue will work.

Important disclaimer

In certain jurisdictions, there may be claims that cannot be fully or even partially waived as a matter of law. This press release is based primarily on the comments of Bear Stearns employees, the review of documents by The Sherman Law Firm, and the firm's general legal knowledge.

This press release is not legal advice and The Sherman Law Firm is not responsible for individuals who choose to treat it as such. Any individual Bear Stearns employee who is offered severance should rely on the counsel of his or her own attorney.

BY:

Brett D. Sherman, Esq.

Managing Attorney, THE SHERMAN LAW FIRM (http://www.shermanlawyers.net)

(201) 723-9470

For more on this topic, see The Bear Stearns Law Blog (http://thecounty.typepad.com/bearstearnslawblog)

###

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

How to Reduce a Lawyer?s Service Cost
You might be wondering why still many legal professionals who charge their clients with excessive fees despite the tremendous competition in the legal business. Maybe, this scenario happens due to the different levels of expertise that these lawyers have.

The Law Office of Michael D. Mirne Announces Information for New Jersey Landlords
In today's article, we will discuss the importance of two separate documents required for landlords of residential real estate.

Identity Theft Victim Takes MBNA and Debt Collector Law Firm to Court over Alleged “Railroad Justice” Arbitration Agreement and Debt Colle
Benjamin Scott, a retired African-American engineer from Pasadena, has brought a lawsuit against MBNA and its debt collection law firm, Patenaude & Felix, alleging that MBNA and Patenaude & Felix wrongfully attempted to collect a fraudulent $30,000 debt against him. The lawsuit alleges that the debt was the result of an identity theft, which was known to MBNA and Patenaude & Felix which yet continued to try to collect the debt. The lawsuit alleges that MBNA and Patenaude & Felix “railroaded” Mr. Scott by wrongfully using a hidden arbitration clause in a credit card application Mr. Scott never even signed to conduct a bogus arbitration against him for which he never even received notice. Patenaude & Felix t...

Maryland Attorney Inducted Into American College of Trial Lawyers
Timothy Maloney, a shareholder in the suburban Maryland law firm of Joseph, Greenwald & Laake, PA, was inducted last month into the American College of Trial Lawyers.

Tax Deductible Trips
Looking to take a vacation and have it count as a tax-deductible occasion? You are not alone. Those with increasingly tight budgets are finding there are ways to mix business with pleasure and take vacations that allow them to declare them on their year-end taxes, saving them money.

Thompson Publishing’s Handy Five-Minute Guide to Employee Handbooks Summarizes Benefits and Legal Protections
“Self-Audit” Reveals When Employee Handbooks Need an Overhaul

Tithing - Giving Money Away To Gain Tax Benefits
No good deed goes unrewarded. This is even true as far as the tax man is concerned.

The Law Of Time Sharing Arrangements
You can divide almost any type of property into a time-share (a type of fractional ownership). Most popular among these, of course, is the condominium time-share arrangement. Private jets are also sold as time-shares (betcha didn?t know that!). What that means, just in case you didn?t already know, is that the time-share owner has the right to use the property for a certain mount of time, for example two weeks a year. Since this time-share interest can be bought, you can also sell it when you get tired of it. You can build up equity in it, and if the terms of your contract or the homeowners? association allow, you can even rent it out to someone else.

Tax Education Offered by Leading Online Day Trading Accountants: CEO of Traders Accounting to Offer Key Advice on Tax Planning During Thei
Traders Accounting, the largest online resource for day trading advice and tax planning services, announced a new day trading training seminar offering the latest advice on tax planning. This two day seminar is being offered in Irvine, California at the Online Trading Academy on January 24, 2008. The Traders Accounting day trading training seminars are intended for the novice or expert day trader as well as those looking to save on taxes.

Sources Of Income Taxable Under Sale Tax
The sell and purchase of taxable goods can be conducted by e-commerce means. It could be retailing and wholesaling of the goods which are taxable under sale tax Act 1990.

Phantom Justice, a Novel by C Wolf Forrest, Contravenes Law in Pursuit of Justice
Can vigilantism to achieve justice ever be warranted on a national basis? It has been said that there is a basic minimum of individual rights of its citizens that States must protect if their subjects are to owe the State obedience to law. What if, however, our 'Nation of Laws' miserably fails to administer justice in the name of law, making a mockery of our judicial systems and making the victims of crime simple collateral damage? Might this foster an organized effort by citizens to balance the scales?

Tax Lady Roni Deutch Analyzes 10 Biggest Tax Evaders On Her Tax Help Blog
As tax season begins for most Americans, Tax Lady Roni Deutch put together a list of the top 10 biggest tax evaders to help taxpayers understand the difference between tax avoidance and tax evasion.

A Helping Hand From Custody Lawyer In Missouri
For every child custody dispute, there are seldom winners because more often than not, everyone is a loser. However, the greatest burden is on the children?

From Camus to Dr. Seuss: Top Attorney's Book Uses Wisdom And Whimsicality to Strategize Your Ideal Life
No one-size-fits-all here! Finding Your Path Through Life begins with an easy but powerful exercise to write out your "P-type" - your very own combination of personality, talents, values, and needs in life. Then in each chapter that follows - on happiness, goals and desires, decision making, and implementing life's changes - you are guided in how to easily adapt every one of the book's messages to that exact P-type. The result will be more satisfying relationships, increased career satisfaction, and greater joy in life - a life that's right for you.