These JPMorgan Shareholders Are Rocking the Boat
Two shareholders filed lawsuits Tuesday against JPMorgan (NYSE:JPM) and its top executives over the bank’s headline-making revelation last week that it had suffered more than $2 billion in trading losses.
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The suits accuse the bank’s top executives, including CEO Jamie Dimon, of misleading investors about the company’s investment exposure and the potential risk of loss on those bets.
Dimon, appearing on NBC’s “Meet the Press” on Sunday, said the loss was a “terrible, egregious mistake” and that he didn’t know how it happened. On Monday, the bank announced that its chief investment officer, whose office was responsible for overseeing the trades, would retire.
Saratoga Advantage Trust, which filed one of the two lawsuits, is seeking to represent a class of investors in JPMorgan stock between April 13, the date of the conference call given by Dimon to discuss the company’s first-quarter results, and May 10, the day the losses came to light.
Saratoga’s suit alleges Dimon and CFO Douglas Braunstein misrepresented the losses and potential risk to investors. Both men are named as defendants in both lawsuits.
The other suit, filed by investor James Baker, is a so-called derivative suit against JPMorgan’s top executives and board of directors. In a derivative lawsuit, shareholders seek to have any damages recovered returned to the company rather than individual shareholders.
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