New Complaint against JPMorgan Chase & Co. (JPM)

This is a 10b5 complaint against JPMorgan Chase coming after years of allegations involving manipulation of NYMEX commodities products from about January 1, 2009 through at least December 31, 2015.

The 10b complaint alleges only 1 drop, on the release of a Bloomberg article on September 23, 2020 relating to this long-known conduct. JPM released an 8-K a few days later, along with the CFTC order. On October 13, 2020, JPM reported its Q3 2020 financial results which were barely impacted by the $920M in fine (a drop in the bucket compared to quarterly net income of $9.4B and $30B in revenues).

There doesn’t appear to be much in the way of loss causation on the 1.64% drop (not 2% as the complaint states) on the Bloomberg article citing “3 people with knowledge in the matter” while the actual news did not lead to any drop, ever, even in 2018 and 2019 when the news of this was first disclosed. Nobody talked about it in the recent conference call on 10/13/2020 and no analyst report talks about the drop, which really isn’t much of one.

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Ed Korsinsky | Litigation View Blog

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