A class action lawsuit which was filed against JP Morgan Chase & Co. alleging that the bank helped cover up fraud at Enron and therefore committed securities fraud because the bank’s share price suffered, was dismissed by a federal judge.
The lawsuit was filed in the United States District Court for the Southern District of New York.
Judge Sidney Stein said the suit “fails to show in a particularized fashion that JP Morgan Chase or its officers intended to deceive its shareholders or in fact did deceive them in a material way.”
JP Morgan agreed to pay $2.2 billion (€1.65 billion) to settle claims related to Enron in March 2005. The company agreed to pay another $350 million (€262.8 million) to shareholders in the bankrupt energy company the same year.