JPMorgan Should Be Cut From Refco MDL: Special Master

Law360, New York (December 9, 2011, 9:03 PM EST) -- The special master overseeing multidistrict litigation related to fraud at defunct brokerage Refco Inc. recommended Thursday that a judge dismiss JPMorgan Chase & Co. from a lawsuit brought by a hedge fund, calling the claims against the bank frivolous and unsubstantial.

In a report, one of two special masters involved in Refco cases in New York federal court said JPMorgan should not be held accountable for Refco's alleged misdeeds because it could not have had sufficient knowledge of any fraud.

Hedge fund Sphinx and investment manager...
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