Loan Buyers Say JPMorgan Misled Them About Billing Probe
- Suit filed by trustee for holders of Millennium Health debt
- Bank spokeswoman says lender ‘acted appropriately’ in role
Signage is displayed at a JPMorgan Chase & Co. bank branch in Chicago, Illinois, U.S., on Saturday, April 9, 2016. JPMorgan Chase & Co. is scheduled to report quarterly earnings figures on April 13.
Photographer: Christopher Dilts/BloombergThis article is for subscribers only.
A leveraged loan that proved to be toxic for investors is coming back to haunt JPMorgan Chase & Co. and a handful of other banks that helped to sell debt for a company that was once the nation’s largest drug-testing lab.
The trustee handling claims for former lenders to Millennium Health LLC filed suit this week against JPMorgan, the agent for the loan, and three other firms. The suit alleges the banks failed to inform investors about a Department of Justice probe into Millennium’s "flagrantly illegal" billing practices.