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Shareholders sue JPMorgan over $2B trading loss

Wednesday - 5/16/2012, 12:09pm  ET

The Associated Press

NEW YORK (AP) - Shareholders of JPMorgan Chase & Co. have filed two lawsuits against the nation's biggest bank, accusing it and its leaders of taking excessive risk and causing a monumental $2 billion trading loss.

The company disclosed the loss last week, saying it resulted from a failed hedging strategy.

The lawsuits filed on Wednesday in New York claim JPMorgan changed its risk model without telling investors. They say the shift led to the losses and claim company leaders misled investors.

One suit was filed by California shareholder James Baker. A second was filed by shareholder Arizona-based Saratoga Advantage Trust's financial services portfolio.

JPMorgan Chase declined to comment.

Its shares were up 6 cents by midday, trading at $36.30.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)