“NEW YORK — JPMorgan Chase & Co shareholders on Tuesday won court permission to pursue their securities fraud lawsuit against the bank over the “London Whale” trading scandal, which caused a $6.2 billion loss, as a class action.
“U.S. District Judge George Daniels in Manhattan rejected the largest U.S. bank’s arguments against class action certification, which often results in higher recoveries because plaintiffs can sue as a group rather than individually.
“JPMorgan, Chief Executive Officer Jamie Dimon and former Chief Financial Officer Douglas Braunstein had said shareholders would be unable to show they relied on alleged misstatements about the bank’s risk management, or prove damages on a classwide basis.
“Brian Marchiony, a bank spokesman, declined to comment.
“The lawsuit stemmed from oversight by JPMorgan’s Chief Investment Office of a synthetic credit portfolio that caused the $6.2 billion loss and was linked to traders in the bank’s London office including Bruno Iksil, the so-called London Whale.”
Read the full Reuters article by Jonathan Stempel here.