Following the news last month that J.P. Morgan had reached an agreement in principle to settle the lawsuit filed against it by the pension fund of the American Federation of Television and Radio Artists (AFTRA) and two other funds, it has emerged in recent court filings that J.P. Morgan has agreed to pay $150 million to the funds settle the suit.
The settlement still needs the approval of the court before being finalized. A court hearing about the settlement is scheduled for June 4.
AFTRA had claimed J.P. Morgan mishandled the reinvestment of its cash collateral in its securities lending program. The other funds that joined the class action suit are the Imperial County Employees Retirement System (California) and the Investment Committee of the Manhattan and Bronx Surface Transit Operating System (New York).
Specifically, the suit alleged J.P. Morgan buried its head in the sand during the collapse of Sigma Finance Corp., a structured investment vehicle in which the AFTRA pension was invested.
(CG)