Investment bank JPMorgan Chase settles in suit over losses sustained in a securities lending program.
JPMorgan Chase has agreed to settle a $150 million lawsuit by the AFTRA retirement fund, the investment bank revealed Tuesday in court filings and on its website.
The suit centered on losses sustained from the bank's securities lending program.
AFTRA, the American Federation of Television and Radio Artists, and benefits administrators from two other unions claim that their money was improperly used to back a risky investment fund, Sigma Finance Corp.
Sigma went belly-up during the global financial crisis in 2008.
"Resolution of the case at this juncture allow the parties to avoid the risks and costs associated with trial, as well as potential years of continued litigation on appeal," attorneys for the plaintiffs wrote in a court filing.
In agreeing to settle, JP Morgan did not admit wrongdoing.
The Imperial County Employees’ Retirement System and the Investment Committee of the Manhattan and Bronx Surface Transit Operating System joined AFTRA in the suit.
The settlement is still pending approval from a judge.