Saturday, May 26, 2012

Lieff Cabraser Announces Investigation of JPMorgan Chase & Co. on Behalf of Shareholders

SAN FRANCISCO, May 25, 2012 (BUSINESS WIRE) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP is investigating the wrongdoing alleged in shareholder actions brought against JPMorgan Chase & Co. /quotes/zigman/272085/quotes/nls/jpm JPM -1.38% ("JPMorgan" or the "Company") and/or its officers and directors arising from the Company's recent multi-billion dollar trading loss.

On May 10, 2012, JPMorgan filed its Form 10-Q for the quarter ending March 31, 2012 with the Securities and Exchange Commission and disclosed that its plan to hedge risks "has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed." On the same day, during an earnings conference call with analysts and investors, defendants revealed that the Company's Chief Investment Office, which is responsible for managing JPMorgan's overall risks and its $360 billion-worth of securities, had sustained a $2 billion derivatives trading loss. Following this revelation, the price of JPMorgan stock fell more than 9% from $40.74 per share to $36.96 per share, on extremely high trading volume. On May 21, 2012, it was reported that JPMorgan's losses from bad derivatives bets could actually exceed $7 billion.

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