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Shareholders Sue JPMorgan

They say it misled them regarding risk

By Kevin Spak,  Newser Staff

Posted May 16, 2012 10:11 AM CDT

(Newser) – Two shareholders filed separate lawsuits against JPMorgan and its top executives in the wake of its $2 billion trading loss, accusing them of misleading investors about the company's risk exposure. One aspires to be a class action suit, representing anyone who owned JPMorgan stock from April 13 to May 10, the Wall Street Journal reports, explaining that April 13 was the date of the company's first-quarter results conference call. The other suit is a so-called "derivative" suit, which means that any damages recovered would be returned back to JPMorgan instead of shareholders.

A man arrives at a JPMorgan Chase office building in New York Monday, May 14, 2012.
A man arrives at a JPMorgan Chase office building in New York Monday, May 14, 2012.   (AP Photo/Mark Lennihan)
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COMMENTS
Showing 3 of 3 comments
Deleted
May 16, 2012 11:59 AM CDT
You are hearing about this only because of the scale of JPM.  JPM made almost $18 billion last year, so this loss is about 11% of annual earnings.  Had it been a bank that made $18 million per year and lost $2 million, you could not have found this story on the back page of a local paper. It was a big, stupid, reckless loss - but it does need to be put in perspective with the size of the bank.
Deleted
May 16, 2012 11:54 AM CDT
Uber stupid lawsuit.  When a shareholder sues a company in which he/she holds stock, only the lawyers win.  In effect, you are suing yourself.  Now, if you can sue management independently, that's a different matter.
ladyrosedeky
May 16, 2012 11:28 AM CDT
And JP Morgan's loss due to this hedge, bet, investment isn't over yet. There is more to come. I'm just waiting for the ivestor's next board meeting of the company that produces Plan B to see if they rehire the CEO after he hosted a fund raiser for the nominee that supports the party platform that would end the production and distribution of Plan B in this country. Even to rape victims at an emergency room. Talk about a shouting one's own financial future in the foot. If you agree with that platform to the point you support that party's candidate with that platform, why are you even a CEO at that company? We will see how much longer these people remain CEOs. Dimon was lucky, the votes on his remaining CEO had been mailed in long before this latest debacle had come to light. You have to wonder if the vote to keep him and his pay package would have been the same if the stock holders had known.

 
derivatives market • lawsuit • class action • JPMorgan Chase • class action lawsuits

 
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