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: Legal Pad | LA

ICERS in heat over JPMorgan's securities lending

By Richard Binder

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The Board of Trustees of the Imperial County Employees' Retirement System filed a class action lawsuit against JPMorgan Chase Bank on behalf of plans that invested in its securities lending program, which lost most of its value after the collapse of Sigma Finance Inc.  This is the most recent of three suits regarding investments in Sigma.  All three have been filed by Radnor, Penn.-based Barroway Topaz Kessler Meltzer & Check.

In January, the firm filed suit on behalf of the American Federation of Television and Radio Artists  Retirement Fund, which is seeking to represent a class of employee plans, defined under the Employee Retirement Income Security Act, against JPMorgan Chase, over investments in Sigma Finance in its securities lending program. One month earlier, the firm filed a similar suit against the Bank of New York Mellon Corp., seeking losses stemming to investments in Sigma Finance.

The latest suit alleges breach of fiduciary duty, negligence and breach of contract.

Details at NLJ.com.

Full post as published by Legal Pad | LA on April 02, 2009 (boomark / email).

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