COLUMBUS, Ohio (AP) - JPMorgan Chase has agreed to pay $150 million to public pension funds and individuals hurt by its $6 billion "London Whale" trading loss, Ohio's attorney general announced Monday.
COLUMBUS, Ohio (AP) — JPMorgan Chase has agreed to pay $150 million to public pension funds and individuals hurt by its $6 billion "London Whale" trading loss, Ohio's attorney general announced Monday.
The settlement deal comes in a 2012 class-action lawsuit that alleged JPMorgan Chase issued false and misleading statements regarding its trading activity, describing risky and speculative trading strategies as mere "hedges" or "risk management" devices.
Subsequent London Whale losses caused the bank's stock value to plummet. The Ohio Public Employees Retirement System lost $2.5 million. It joined similar funds in Oregon and Arkansas and Swedish pension fund AP7 as lead plaintiffs. The case was filed in the U.S. District Court for the Southern District of New York.
"Misleading investors with wrong or incomplete information is unacceptable and causes real damage," Ohio Attorney General Mike DeWine said in announcing the agreement. "Ohio's pension funds, like all investors, expect companies to provide accurate information so they can appropriately judge the risk of an investment."
A message seeking comment from the company was not immediately returned.
Besides pension funds, thousands of individuals who bought JPMorgan stock between April 13, 2012, and May 21, 2012, are covered under the settlement. DeWine said a claims administrator appointed by the court is expected to begin reaching out to potential claimants in the next few weeks.