Tuesday, May 15, 2012

Kaboom! Robbins Geller Rudman & Dowd LLP Files Class Action Suit against JPMorgan Chase & Co., James Dimon, Ina Drew, and CFO Douglas Braunstein

Yahoo finance:

The complaint charges JPMorgan and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Defendant JPMorgan is a financial holding company, which provides various financial services worldwide. During the Class Period, as alleged in the complaint, Defendants issued materially false and misleading statements regarding certain securities trading by the Company’s Chief Investment Office (“CIO”). Specifically, Defendants misrepresented and/or failed to disclose that the CIO had engaged in extremely risky and speculative trades that exposed JPMorgan to significant losses.

As alleged in the complaint, on May 10, 2012, JPMorgan filed its Form 10-Q for the quarter ended March 31, 2012, with the Securities and Exchange Commission. After the market closed, JPMorgan held a conference call with analysts and investors to discuss the Form 10-Q. Defendants opened the conference call by revealing that the Company’s CIO trading had sustained a multi-billion dollar trading loss. In response to this disclosure, the price of JPMorgan stock declined from $40.74 per share to $36.96 per share on extremely heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of JPMorgan common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Here is the complaint. Click here.
Please note: The class action was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of JPMorgan common stock between April 13, 2012 and May 11, 2012 (the “Class Period”).

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