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ERISA and Derivative Actions Brought Against JPMorgan

By Matthew Popowsky on May 22, 2012
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Last week we reported that at least four securities fraud class actions had been filed against JPMorgan in the wake of its well-publicized $2 billion (or more) trading loss.  Not surprisingly, ERISA and derivative actions have now also been filed on behalf of JPMorgan’s employees and shareholders, respectively.  The ERISA action, which has been filed but is not yet available online, accuses JPMorgan and certain executives of violating their duties to retirement plan participants by including company stock as an investment option, hiding the stock’s risk, and failing to move participants to safer choices.  The derivative action, assigned to Judge Rakoff, claims that senior management radically altered JPMorgan’s investment risk exposure and hid that change — which allegedly caused the massive trading loss — from shareholders.

  • Posted in:
    Banking, Finance and Securities, Class Action & Mass Torts
  • Blog:
    SDNY Blog
  • Organization:
    Steptoe LLP
  • Article: View Original Source

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