Hagens Berman today reminded JPMorgan Chase & Co. (NYSE:JPM) (“JPM” or
“the Company”) investors that less than one month remains before the
July 13, 2012, lead plaintiff deadline in a securities class-action
lawsuit and notified JPM investors that the class period has been
extended to cover purchases of JPM common stock back to February 24,
2010.
Investors with more than $300,000.00 in loses from the purchase of
JPMorgan common stock between February 24, 2010, and May 10, 2012 (the
“Class Period”), and who have suffered substantial financial losses are
encouraged to contact Hagens Berman Partner Reed Kathrein by calling
(510) 725-3000. Investors may also contact the firm via email at JPM@hbsslaw.com.
The complaint, filed on June 15, 2012, in the United States District
Court for the Southern District of New York alleges that JPMorgan issued
false and misleading statements to investors concerning the knowledge of
increasingly high-risk directional bets emanating from JPM CIO's London
office.
According to the complaint, senior JPM executives in the Company's
Investment Banking unit, among others, similarly complained to JPM's top
executives, including CEO Jamie Dimon ("Dimon"), that the CIO unit was
placing speculative bets that it did not fully understand which exposed
JPM to significant losses. Having grown accustomed to the quick profits
that the CIO office delivered to JPM's bottom line as a result of
similar, high-risk trading strategies that turned out to be profitable,
these red flags and warnings were ignored by senior management and
investors were kept in the dark, according to the lawsuit.
During the class period, the lawsuit alleges that JPM represented in its
annual reports on Form 10-K that the CIO was “primarily concerned with
managing structural market risks which arise out of the various business
activities of the Firm.”
On May 10, 2012, JPMorgan announced to investors that it had suffered
slightly more than $2 billion trading loss under synthetic credit
positions. On the news, the price of JPMorgan stock declined from $40.74
to $36.96.
The class-action lawsuit asks the court to award damages to investors
who suffered losses following JPMorgan’s disclosure of its trading
losses.
Whistleblowers
Hagens Berman welcomes help in its investigation of whether JPMorgan
misled investors by failing to disclose risks associated with its
trading strategy.
Persons with knowledge that may help the investigation are encouraged to
contact the firm. The SEC recently finalized new rules as part of its
implementation of the whistleblower provisions in the Dodd-Frank Wall
Street Reform Bill. The new rules protect whistleblowers from employer
retaliation and allow the SEC to reward those who provide information
leading to a successful enforcement with up to 30 percent of the
recovery. You can learn more about Hagens Berman’s whistleblower
practice at www.hb-whistleblower.com.
Whistleblowers can contact Reed Kathrein by calling (510) 725-3000 or by
emailing JPM@hbsslaw.com
About
Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in 10 cities. The firm represents whistleblowers,
workers and consumers in complex litigation. More about the law firm and
its successes can be found at www.hb-securities.com.
The firm’s securities law blog is at www.meaningfuldisclosure.com.
