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Bear Stearns braces for legal battles

Bear Stearns has amended its bylaws to prepare for legal expenses as more than a half-dozen law firms have announced plans to file lawsuits on behalf of shareholders and employees, and as US regulators have indicated they might investigate possible violations of securities law.

The change to the bank’s bylaws, filed with the US Securities and Exchange Commission, are a provision to compensate Bear Stearns officers implicated in lawsuits for their attorneys’ fees and other legal costs they incur.

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