JPMorgan Chase to pay $23M to settle dispute
JPMorgan Chase & Co. has agreed to pay $23 million to settle claims that it mishandled pension fund money by investing with Lehman Brothers.
A court document filed Friday shows that the bank denies any wrongdoing but agreed to settle the lawsuit to avoid the burden and expense of litigation. A U.S. District Court must approve the settlement before it is final.
The lawsuit was filed by the Operating Engineers Pension Trust in 2009. They claim JPMorgan handled its funds recklessly by investing in notes issued by failed investment firm Lehman Brothers Holdings Inc.
Lehman's bankruptcy filing in September 2008 helped spark a credit crisis that plunged the nation into the recession.
A representative for JPMorgan and the plaintiffs did not respond to a request for comment.