Jimmy Cayne and Alan Schwartz along with Alan "Ace" Greenberg, former chairman, and other senior staff denied wrongdoing, but agreed for the settlement to miminise "burden, expense, uncertainty and distraction of further litigation", as reported by Financial Times.
The Michigan department of treasury said it was "pleased to have reached a settlement agreement with Bear Stearns and other defendants in this matter, and are hopeful the agreement will be approved".
The settlement will be effective after receiving court approval, while proceedings against Bear Stearns were led by the state treasurer of Michigan, representing a state pension fund that, at the time of the suit, administered assets of $64bn.
The settlement reaches on the fruition over four years after Bear was rescued from financial crisis of 2008 by JPMorgan with the support of the Federal Reserve.
