STOCKHOLM, Sweden, Dec. 18, 2015 /PRNewswire/ -- Sjunde AP-Fonden ("AP7"), together with the three additional Court-appointed Lead Plaintiffs, and defendant JPMorgan Chase & Co. ("JPMorgan") have agreed to settle a 2012 securities class action for $150 million in cash. The settlement resolves claims arising out of the trading and risk management activities of JPMorgan's Chief Investment Office ("CIO") and its so-called "London Whale" trades.
The case was initially filed in the United States District Court for the Southern District of New York in July 2012. In August 2012, the Court appointed AP7, along with public pension funds from the states of Arkansas, Ohio and Oregon, as Lead Plaintiffs in the action. In November 2012, Lead Plaintiffs filed a Consolidated Amended Class Action Complaint, followed by their Second Amended Consolidated Class Action Complaint in April 2013 ("Complaint").
The Complaint asserted claims against JPMorgan and certain of its officers during the relevant period, alleging that defendants violated the federal securities laws by making false and misleading statements regarding the activities of the CIO and the extent of the risk posed by the London Whale trades within the CIO's synthetic credit portfolio. The Complaint further alleged that these false and misleading statements caused the price of JPMorgan common stock to be artificially inflated and that the price of the stock declined significantly after the CIO's trading losses were disclosed, causing damage to investors.
Following years of hard-fought litigation, including the Court's certification of a class of investors, the parties agreed to mediate the case before the Honorable Daniel H. Weinstein (ret.). The mediation process, which commenced in June 2015, was successful and culminated in the settlement. "We believe that the settlement represents an excellent recovery for the class after more than three years of litigation", said Richard Gröttheim, CEO for AP7, who oversaw the litigation on behalf of AP7. "AP7's involvement in this matter illustrates its continued commitment to represent the interests of investors."
Following preliminary approval of the settlement by the Court, all potential settlement class members will be notified of their status in the class by a Court-appointed claims administrator and will receive additional information on how to file a claim.
Lead Plaintiffs and the Class were represented by Kessler Topaz Meltzer & Check, LLP, Bernstein Litowitz Berger & Grossmann LLP and Grant & Eisenhofer P.A. in the Action.
AP7 is the state-owned alternative to the private investment funds offered by the premium pension system. More than three million Swedes use AP7 Såfa to save for their pensions. Since inception, AP7 Såfa has given pension savers higher average returns and lower fees than the private funds available in the premium pension system. - See more at: https://www.ap7.se
For more information, please contact:
Darren J. Check, Esquire
SOURCE Kessler Topaz Meltzer & Check, LLP