COLUMBUS, Ohio (WDTN) – The Ohio Attorney General Mike DeWine announced Monday a $150 million class action settlement with JPMorgan Chase & Co. over a 2012 trading scandal.
The “London Whale” scandal was first revealed in 2012. The settlement includes everyone who purchased JP Morgan common stock between April 13 and May 21, 2012.
“Misleading investors with wrong or incomplete information is unacceptable and causes real damage,” said Ohio Attorney General Mike DeWine. “Ohio’s pension funds, like all investors, expect companies to provide accurate information so they can appropriately judge the risk of an investment. I am pleased that Ohio has reached this settlement to help recover investment losses for our OPERS pension system members and also discourage future fraud.”
The suit, filed in July 2012, alleged that JPMorgan Chase issued false and misleading statements regarding its trading activity, describing risky and speculative trading strategies merely as “hedges” and “risk management” devices. The Attorney General says the trading losses incurred by JPMorgan Chase caused the bank’s stock value to plummet resulting in a billion dollars of investor losses. The Ohio Public Employees Retirement System alone lost approximately $2.5 million as a result of the alleged fraud.
The Ohio Public Employees Retirement System alone lost approximately $2.5 million as a result of the alleged fraud. Thousands of individual Ohioans are also potential class members in the case.
The AG says In the next few weeks, all class members will be notified of their status in the class by a claims administrator appointed by the court, and will receive additional information about filing a claim.