Manhattan U.S. District Judge George B. Daniels gave preliminary approval last month to the $150-million settlement that would end civil fraud litigation tied to JPMorgan Chase & Co.’s disastrous $6 billion “London Whale” trading fiasco. Judge Daniels set a May deadline for objectors to come forward. The move came after the $209 billion bank and lead Plaintiffs, including the Ohio Public Employees Retirement System, noted that the money had already been placed in escrow and was ready to be disbursed to thousands of class members.
In 2014, at the motion-to-dismiss stage, Judge Daniels reduced the size of the case by cutting loose three individual Defendants and limiting the Plaintiffs’ claims to statements made by Dimon and Braunstein at an April 2012 earnings conference call. The suit claims JPMorgan violated the Securities Exchange Act by misleading investors about the riskiness of the bank’s derivatives trading, which led the bank’s stock to drop when the losses were disclosed.
Investors who bought the bank’s common shares between April 13 and May 21, 2012, will be part of the settling class. Other “London Whale” civil suits, including employee pension and derivative claims against JP Morgan, have been dismissed. Two former JPMorgan traders, Javier Martin-Artajo and Julien Grout, face criminal charges for allegedly concealing the “London Whale” losses. But neither has been brought to the United States. The bank settled with U.S. and British regulators in 2013. The Plaintiffs are represented by Daniel L. Berger of Grant & Eisenhofer PA, Salvatore J. Graziano of Bernstein Litowitz Berger & Grossmann LLP and Andrew L. Zivitz of Kessler Topaz Meltzer & Check LLP.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.