JPMorgan Chase & Co. won dismissal of a lawsuit filed on behalf of current and former employees over losses in their retirement accounts allegedly stemming from the $6.2 billion “London Whale” trading debacle.
U.S. District Judge George B. Daniels in Manhattan today dismissed the suit by participants in the retirement plan who lost money on company stock after the bank reported a $2 billion trading loss.
The employees said the bank made misstatements about its financial health from January to April 2012, allowing its stock to trade at inflated prices. They claim they lost money when JPMorgan disclosed its losses publicly.
The trading losses came on synthetic credit products, which are derivatives tied to credit performance. In disclosing the $2 billion loss on transactions he said were intended to manage risk, JPMorgan Chairman and Chief Executive Officer Jamie Dimon cited “egregious” failures by the bank’s chief investment office.
Daniels is overseeing lawsuits against New York-based JPMorgan tied to trading losses allegedly caused by its chief investment office and Bruno Iksil, known as the “London Whale” because of the size of his bets.
The case is In Re JPMorgan Chase & Co. Erisa Litigation, 12-cv-04027, U.S. District Court, Southern District of New York (Manhattan).