A Missouri pension fund has sued JPMorgan Chase executives and board members over $6.2bn in trading losses that were revealed last year, citing a recent U.S. Senate report that criticized the bank's management for failing to catch the bad trades.
Reuters reports that The Police Retirement System of St. Louis filed the lawsuit against Chairman and CEO Jamie Dimon, as well as other executives and board members, in State Supreme Court in Manhattan on Monday.
The lawsuit said the defendants breached their duties to shareholders by failing to block the risky trades. The bets were built by a JPMorgan trader who came to be known as the 'London Whale'.
In the meantime, Bloomberg reports that Assured Guaranty Municipal Corp., the bond insurer, was blocked by a judge from proceeding with a lawsuit against JPMorgan Chase on grounds that it would interfere with the reorganization of Jefferson County, Alabama, the biggest U.S. municipal bankruptcy.
U.S. Bankruptcy Judge Thomas B. Bennett in Birmingham, Alamaba, found that the case Assured has against JPMorgan in New York state court involves the same facts, circumstances and lawyers as a similar case in which Syncora Guarantee Inc. sued Jefferson County. Because Assured hadn’t named the county in its case, the insurer argued that its lawsuit should proceed.
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