Suits Over JPMorgan's $2B Loss Could Haunt Bank

Law360, New York (May 16, 2012, 7:49 PM EDT) -- JPMorgan Chase & Co. investors hit the bank with securities fraud class actions this week over its $2 billion loss in a botched hedging strategy, and legal experts say the potential damages to both the bank’s bottom line and reputation could be significant.

Two of the suits, filed in New York federal court by the Saratoga Advantage Trust and investor David Smith, respectively, allege that JPMorgan violated Section 10(b) and Rule 10(b)5 of the Securities Exchange Act by misleading investors about the riskiness of the trading...
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