The liquidators of the two now-defunct hedge funds formerly run by Bear Stearns have reached a settlement.
The Wall Street Journal reported that liquidators Geoffrey Varga and William Cleghorn agreed to voluntarily withdraw the lawsuit against Bear Stearns's asset management arm, which is now owned by JP Morgan.. The terms of the settlement was not disclosed.
Varga and Cleghorn sued the two hedge funds, which collapsed in 2007, in 2008 to recover more than $1 billion in losses accusing Bear Stearns of not properly supervising the funds.
Ralph Cioffi and Matthew Tannin, the two managers who oversaw the collapsed hedge funds, paid a total of $1.05 million last year in a fraud charge brought on by the Securities and Exchange Commission.