Financial institution JPMorgan Chase & Co. (NYSE:JPM) faces a huge lawsuit from Swiss trader. Kai Herbert is suing the company for about 580.000 in pounds (estimated $920.000 in American dollars) because of a simple typographical error on the contract.
Apparently, the contract stated that Herbert would receive 24 million rand as yearly pay. The company’s actual payment plan was 2.4 million rand. When Herbert uncovered the truth, he stopped showing up to work and consequently was let go.
This isn’t the only lawsuit against bank salaries. When Commerzbank AG bought up Dresdner Kleinwort Ltd, they were slapped with a lawsuit by former employees who claimed their bonuses were reduced by 90 percent. The bank’s spokesperson and Herbert’s lawyer have declined to opportunity to make a public statement.
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JPMorgan Chase is one of the four largest banks in the United States of America. They currently operate commercial banks and credit card services under the name of Chase. In the last decade or so, they bought up a lot of smaller community banks and other financial institutions including BankOne, Bear Stearns, and Washington Mutual.
Chase also has a history of being involved in scandalous financial situations. Back in the early 2000s, they had to pay up a hefty sum of lawsuit fees(about $2 billion dollars worth) that they accrued for their involvement in the Enron scandal. They also paid up a settlement of $722 million with U.S. Securities and Exchange Commission. This agreement came after a research probe to uncover the bank’s involvement with Alabama’s near-bankruptcy scare.
It’s quite interesting to know that a former employee can sue a big corporation, especially when it’s due to an honest mistake like a typo. That said, it is possible that given the questionable history of Chase’s business practices, there could be something more going on that we don’t know about. No matter what happens in this case, it’s a big possibility that the bank could lose a lot of money and that might affect their future.