JP Morgan ordered to pay billionaire over damages claim

American courtroom

The bank has to pay $50m after losing its claim for damages.

The BBC reports that JP Morgan has been ordered to pay Russian billionaire Leonard Blavatnik $50m after losing a claim for damages.

Mr Blavatnik brought the claim against the investment bank after suffering losses following the collapse of the US subprime mortgage market. New York judge Melvin Schweitzer ruled that JP Morgan breached its contract with Mr Blavatnik's investment fund but he rejected a claim for negligence because at the time the investments were considered 'reasonable'.

Mr Blavatnik, one of the world's richest men, sued the largest US bank in 2009 to recover more than $100m. According to Mr Blavatnik, JP Morgan Investment Management promised that it would invest his money conservatively after opening the account in 2006.

Instead, the bank allegedly breached a 20% limit set for mortgage-backed securities by misclassifying securities backed by a pool of subprime loans.

To access the complete BBC article hit the link below.

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image: © Clyde Robinson

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