JPMorgan Settles Sec Lending Suit

Bank to pay $150 million to three union pension funds claiming losses from its securities lending program.

JPMorgan Chase & Co. will pay $150 million to settle a lawsuit claiming losses from the bank’s securities lending program, according to court papers.

The suit was filed by three union pension funds, which represented a class of all investors in a group of structured debt securities. The settlement was announced last month. The parties disclosed the terms of the agreement in a filing in Manhattan federal court March 16.

The funds claim they lost money that New York-based JPMorgan invested for them in medium-term notes issued by Sigma Finance Corp., a structured investment vehicle that collapsed in 2008.

The union pension funds representing the class are the AFTRA Retirement Fund, the Imperial County Employees’ Retirement System and the Investment Committee of the Manhattan and Bronx Surface Transit Operating System.

The settlement must be approved by a judge before it can take effect.

The case is Board of Trustees of the AFTRA Retirement Fund v. JPMorgan Chase Bank NA, 09-cv-686, U.S. District Court, Southern District of New York (Manhattan).

 

Bloomberg News

 

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