According to Reuters, two of its shareholders are suing one of the major banks in the country JPMorgan Chase & Co. (NYSE:JPM). The lawsuit that was filed late Tuesday claims that the bank did not fully disclose the risk in its recent trades to its investors. The bad investments have cost JPMorgan Chase & Co. (NYSE:JPM) $2 billion in trading losses. The chief Investment Officer who was in charge of monitoring these investments will be retiring from the company shortly.
Saratoga Advantage Trust had filed the one lawsuit on Tuesday. Saratoga Advantage is representing investors who made investments with JPMorgan between April 13 and May 10. Top Bank Chief Executive Jamie Dimon has been stipulated in the lawsuit as a defendant. Saratoga Advantage Trust says that Mr. Dimon and Douglas Braunstein Chief Financial Officer purposely misrepresented the facts to its investors.
James Baker another investor is the plaintiff in the second lawsuit filed against JPMorgan. He is filing a derivative lawsuit asking that the company’s lost money be returned to the company instead its investors.
Mr. Dimon who recently appeared on “Meet the Press” said the recent investment disaster was a horrible mistake. Unfortunately, for investors who were the innocent bystanders in the corporate mess that has been left behind by JP Morgan Chase the thousands of dollars lost may not even be replaced. In a time when the economy is still on shaky grounds it has to make one wonder if investing their money is a good thing in times like this.
