JPMorgan settles $681m oil lawsuit

Oil Barrels

JPMorgan said it tentatively settled a lawsuit by Texas mineral-rights owners who claim the bank bilked them out of fair compensation for the chance to drill on shale-rich land, to the tune of $681m.

Bloomberg News reports that the trial was to begin in San Antonio state court over claims by beneficiaries of the South Texas Syndicate Trust. They alleged the bank, supposedly working on their behalf, instead hatched sweetheart deals with Petrohawk Energy Corp. and Hunt Oil Co. for cut-rate prices on their rights to the Eagle Ford Shale formation, one of the nation’s hottest oilfields.

In the end, the beneficiaries said, they got only $32.5m on rights that yielded benefits worth $1.1bn because JPMorgan wanted to curry favour with the oil companies at their expense. The bank rejected the claims as speculation.

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JPMorgan Tentatively Ends $681 Million Texas Shale Case

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