JPMorgan fails to end lawsuit over London Whale losses
JPMorgan Chase must face a lawsuit in which shareholders accused it of concealing risks that surfaced when it lost at least $6.2 billion in 2012 over trades made by Bruno Iksil, the so-called London Whale.
U.S. District Judge George Daniels in Manhattan said shareholders adequately alleged that JPMorgan, Chief Executive Jamie Dimon and former Chief Financial Officer Douglas Braunstein misled them about the bank's ability to manage risk before the losses at its chief investment office (CIO) surfaced.
Daniels also dismissed related claims against three other JPMorgan officials: Ina Drew, who led the CIO; Mike Cavanagh, who preceded Braunstein as CFO; and Barry Zubrow, who had been the bank's chief risk officer.
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The judge also dismissed a separate shareholder lawsuit against JPMorgan directors over the London Whale losses, and a lawsuit by JPMorgan employees who held the bank's stock in their retirement accounts.
JPMorgan spokesman Brian Marchiony declined to comment.