Legal News

JPMorgan Chase Ordered to Pay $18 Million to a Trust
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

JPMorgan Chase & Co has been ordered by a United States state court to pay over $18 million to a trust in a lawsuit that was filed because of the bank’s recommendation of a security that was not suitable for the trust and actually was a benefit to the bank.

Judge Linda Morrissey, from the District Court for Tulsa County in Oklahoma, wrote that the bank was involved in misconduct and also breached its duties of care to the trust when it recommended the “variable prepaid forward contracts.”

  
What
Where


The bank and the trust engaged in prepaid forward contracts from 2000 to 2005. In 2007, the trust’s assets were ordered transferred to another bank by a court. Morrissey also ordered that the bank pay punitive damages, which will be determined later, as well as the legal fees for the trust.

According to a spokesperson for JPMorgan, the bank does not agree with the court’s ruling. In a statement, the spokesperson said that the bank “will take all appropriate measures to respond, including appealing the decision.”

The court said in its ruling that the bank breached its fiduciary duty when it invested proceeds from the contracts in its investment products. The bank charged investment fees on those transactions as well as corporate trustee fees. Those fees “amounted to double dipping that was inherently unreasonable,” Morrissey wrote in her decision. Morrissey also wrote that assigning punitive damages to JPMorgan are justified because the bank “has been guilty of reckless disregard for the rights of others.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Litigation Attorney

USA-FL-Fort Lauderdale

Seeking a qualified Transactional Attorney with experience in litigation, covenant enforcement and c...

Apply now

Consumer Defense Litigation Attorney

USA-PA-Philadelphia

SESSIONS, FISHMAN, NATHAN & ISRAEL seeks an experienced attorney to join its commercial litigation /...

Apply now

Bankruptcy and Restructuring Partner / Associate

USA-OH-Cleveland

Buckley King is seeking both a partner and a mid-level associate to represent both creditors and deb...

Apply now

Patent Attorney Burlington, VT / Lebanon, NH

USA-VT-Burlington

DRM is seeking an experienced patent attorney having a portable book of business and a strong b...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Associate Attorney

USA-PA-Pittsburgh

Pittsburgh office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 3+ year...

Apply Now

Junior Antitrust Associate Attorney

USA-DC-Washington

Washington, D.C. office of a BCG Attorney Search Top Ranked Law Firm seeks junior antitrust associat...

Apply Now

Civil Litigation (Insurance Defense) Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks civil litigation (insurance defense) associate attorney with ex...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top