JPMorgan Unit Ducks $56M Alliance ARS Suit

Law360, New York (November 8, 2011, 4:23 PM EST) -- The Financial Industry Regulatory Authority on Monday denied Alliance Semiconductor Corp.’s claim that J.P. Morgan Securities Inc. should pay $56 million in damages for misleading the holding company over the value of its investment in an auction rate securities package.

An arbitration panel rejected Alliance’s allegations that Bear Stearns & Co. Inc., which was acquired by JPMorgan Chase & Co. in 2008, breached its fiduciary obligations to Alliance by advising the company to invest in “grossly unsuitable” auction rate securities issued by Ambac Assurance Corp....
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