Bloomberg News reports that a group of pension funds accused JPMorgan of turning its chief investment office in London into a 'secret hedge fund' that caused the losses. The bank told investors that the office’s primary role was managing risk when in fact it was engaging in trades to generate profit, they said.
The settlement 'reflects a reasonable compromise concerning the merits of lead plaintiffs’ claims" and "the obstacles to prevailing at trial', the pension funds said in a filing seeking court approval of the deal.
Ohio pension funds and other plaintiffs in the case claim they incurred tens of millions of dollars of losses because their fund managers were given 'false and misleading information'.
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