A U.S. federal judge on Wednesday dismissed a shareholders' lawsuit claiming JPMorgan board members knew about Bernard Madoff's Ponzi scheme and ignored red flags signaling his massive fraud.
Reuters reports that the lawsuit filed in February alleged that Chief Executive Jamie Dimon and 12 other current and former executives and directors turned 'a blind eye to Madoff's thievery'.
The claims were based partly on statements Madoff gave in a series of interviews - including conversations with plaintiffs lawyers while in federal prison in North Carolina - about his interactions with the bank. Madoff was an important client of the bank for two decades.
Judge Paul Crotty ruled there were not enough specific facts to prove the board breached their duties to shareholders.
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U.S. judge dismisses suit claiming JPMorgan knew of Madoff fraud
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