A lawsuit was filed by a former employee of JPMorgan Chase & Co. in connection with the $2billion trading loss and other participants in the bank’s retirement plan should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/23/2012 -- A former employee of JPMorgan Chase & Co. filed a lawsuit in Federal Court on behalf of participants in the bank’s retirement plan between April 13, 2012 and May 10, 2012, who lost money on NYSE:JPM stock in connection with the $2billion trading loss.
Former employees of JPMorgan Chase & Co. (NYSE:JPM) and those who were participants between April 13, 2012 and May 10, 2012, in the 401(k) or the bank’s retirement plan, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
Plaintiff alleges violations of the Employee Retirement Income Security Act (“ERISA”). Specifically the plaintiff alleges that the bank made allegedly misstatements about its financial health that allowed NYSELJPM stock to trade at inflated prices between April 13 and May 10. The plaintiff claims that defendants violated their fiduciary duties to participants in the 401(k) and other retirement plan participants by including NYSE:JPM stock as an investment option, while allegedly hiding the stock's risk, and allegedly failing to move participants to safer choices.
Then on May 10, 2012 JP Morgan Chase & Co said in a filing with the U.S. Securities and Exchange Commission (”SEC”) that JP Morgan’s Chief Investment Office has had significant market-to-market-losses in its synthetic credit portfolio, and this portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed.” During a conference call held after the market closed, on May 10, 2012, JP Morgan Chase & Co. CEO revealed that the Company lost about $2 billion on synthetic credit securities after “egregious mistakes” in its Chief Investment Office.
On May 11, 2012, the New York Times reported that the U.S. and British banking regulator learned of the trading loss last month and have been in discussions with JPMorgan Chase about it. The Wall Street Journal said in an article on Friday that “the losses stemmed from wagers gone wrong in the bank's Chief Investment Office” that left JP Morgan’s CEO with a rare black eye following a long run as what some called the "King of Wall Street."
Standard & Poor's Ratings Services revised its outlook on JPMorgan Chase & Co to negative from stable and Fitch Ratings downgraded JPMorgan Chase & Co.'s Long-term Issuer Default Rating, its Short-term Issuer Default Rating, and its viability rating placed it on Rating Watch Negative.
Shares of JPMorgan Chase & Co. (NYSE:JPM) fell from $40.74 per share on Thursday, May 10, 2012 to as low as $32.48 on May 21, 2012, whipping out billions in market cap.
On May 22, 2012 NYSE:JPM shares closed at $34.01 per share.
Those who are former employees of JPMorgan Chase & Co. (NYSE:JPM) and were a participant between April 13, 2012 and May 10, 2012, in the 401(k) or the bank’s retirement plan, have certain options and should contact the Shareholders Foundation..
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