JPMorgan wins preliminary approval of London Whale claims

Beached Whale

JPMorgan won a judge’s preliminary approval of a deal to pay $150m to settle investor claims that it hid from them as much as $6.2bn in losses caused by a trader dubbed the London Whale.

Bloomberg News reports that U.S. District Judge George Daniels in New York on Tuesday issued a ruling tentatively accepting the accord. After hearing from investors covered by the settlement, the judge will decide later whether to grant final approval.

"The settlement is fair, reasonable and adequate for this class," Daniels said.

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.

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JPMorgan Chase Wins Preliminary Approval of ‘Whale’ Accord

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