Bear Stearns to be sued over subprime funds: CNBC

"According to CNBC, the lawsuit will allege Bear Stearns made material misrepresentations in offering documents, misrepresented risks of the hedge funds in those documents, and misrepresented its ability to control those risks. ... plaintiffs could have a tough time proving their case. Because the funds were aimed at sophisticated investors such as institutions and wealthy clients, it could be hard to argue that the risks were not properly understood." -- I don't know. Apparently even Bear Stearns didn't understand the risks. One could always use that as a litmus test.