JPMorgan Chase & Co. will pay $23 million to settle a class-action lawsuit with pension funds that accused the bank of breaching its fiduciary duty by investing their money in Lehman Brothers Holdings Inc. notes.
JPMorgan and the lead plaintiff, the Board of Trustees of the Operating Engineers Pension Trust, filed a proposed settlement agreement yesterday in federal court in Manhattan.
The settlement pertains to all plans and entities governed by the Employee Retirement Income Security Act for which JPMorgan invested cash collateral in two floating rate notes issued by Lehman Brothers and continued to hold those securities until Sept. 15, 2008, when Lehman Brothers sought bankruptcy, according to the filing.
Joe Evangelisti, a spokesman for New York-based JPMorgan, didn’t immediately respond to an e-mail yesterday after regular business hours seeking comment on the settlement.
The case is Board of Trustees of the Operating Engineers Pension Trust v. JPMorgan Chase Bank NA, 09-cv-09333, U.S. District Court, Southern District of New York (Manhattan.)