-- MURRAY FRANK
LLP announces that it has filed a class action complaint in the United States
District Court for the Southern District of New York on behalf of purchasers
common stock in JPMorgan Chase & Co. ("JPMorgan" or the
"Company") between April 13, 2012 and May 10, 2012, inclusive (the
"Class Period").
The lawsuit
alleges violations of the Securities Exchange Act of 1934 (the "Exchange
Act") that occurred when the Defendants issued materially false and
misleading statements regarding the losses and risk of loss to the Company
arising from massive bets on derivative contracts related to credit indexes
reflecting interest rates on corporate bonds. These derivative bets went
horribly wrong, resulting in billions of dollars in lost capital for the
Company and billions more in lost market capitalization for JPMorgan
shareholders.
As alleged in
the lawsuit, JPMorgan's credit index derivative positions were so large that
they generated market rumors and press coverage in the weeks leading up to the
Company's April 13, 2012 earnings conference call with investors. Specifically,
the lawsuit alleges that instead of disclosing the extremely risky nature of
JPMorgan's derivative bets, and the actual losses that had been incurred at the
time, Defendants falsely characterized the derivative positions as mere
"hedging" strategies. JPMorgan's CEO, Defendant James
"Jamie" Dimon, went so far as to call press reports about the
Company's derivative positions a "complete tempest in a teapot."
No comments:
Post a Comment