AFTRA Retirement Board Sues JP Morgan Chase

aftra logoThe board of trustees of AFTRA’s retirement plan, in conjunction with two other retirement/pension plans, filed a class action suit against JP Morgan Chase, alleging that the bank left a half-billion dollars of client money in a “structured investment vehicle” called Sigma even as the bank was expressing doubts at the highest levels about the safety of the client transaction.

Meanwhile, the bank itself lent money to Sigma, but under terms that would allow it to profit if the company failed, according to the plaintiffs. Sigma ultimately did collapse, and the investors were left with assets worth six cents on the dollar, the suit contends, while JP Morgan Chase made profits of more than $1.9 billion on the deal.

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