J.P. Morgan Settles Securities Lending Suit

J.P. Morgan Chase agreed to pay $150 million to settle a lawsuit claiming losses from the bank’s securities lending program.

The class action lawsuit over J.P. Morgan Chase’s investment in structured investment vehicle Sigma Finance Inc. through its securities lending program was brought by the AFTRA Retirement Fund; the Imperial County Employees’ Retirement System; and the Manhattan and Bronx Surface Transit Operating Authority Pension Plan (see “Court Certifies Class in J.P. Morgan Securities Lending Suit“).   

The pension funds alleged that J.P. Morgan breached its Employee Retirement Income Security Act (ERISA) and New York state law-imposed fiduciary duties by investing in Sigma when it should have known that Sigma was a poor investment. Sigma collapsed in September 2008.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

«