A lawsuit was filed for investors in NYSE:JPM over alleged securities laws violations by JPMorgan Chase & Co. Deadline: July 13, 2012. NYSE:JPM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 05/15/2012 -- An investor in NYSE:JPM shares filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged Violations of Federal Securities Laws by certain financial statements made by JPMorgan Chase & Co. in connection with its Chief Investment Office.
Investors who purchased shares of JPMorgan Chase & Co. (NYSE:JPM) between April 13, 2012 and May 11, 2012, have certain options and there are strict and short deadlines running. Deadline: July 13, 2012. NYSE:JPM stockholders should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of JPMorgan Chase & Co. (NYSE:JPM) common stock during the period between April 13, 2012 and May 11, 2012, that JPMorgan Chase & Co. and certain of its officers and directors violated the Securities Exchange Act of 1934. Defendants issued materially false and misleading statements regarding certain securities trading by the Company’s Chief Investment Office (“CIO”).
Specifically, the plaintiff claims that defendants allegedly misrepresented and/or failed to disclose that the CIO had engaged in extremely risky and speculative trades that exposed JPMorgan to significant losses.
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.” The Company estimated that its Corporate unit could post an $800 million loss in the second quarter.
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 Friday 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."
Also on Friday, 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 35.79 on May 14, 2012, wiping out more than 18billion in market cap.
Those who purchased shares of JPMorgan Chase & Co. (NYSE:JPM) between April 13, 2012 and May 11, 2012, have certain options and there are strict and short deadlines running. Deadline: July 13, 2012. NYSE:JPM stockholders should contact the Shareholders Foundation.
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