News & Events

  On January 21, 2009, the United States Court of Appeals for the Second Circuit affirmed the dismissal of an Enron-related securities class action filed against JPMorgan Chase purportedly on behalf of the bank’s shareholders.
  In an action commenced in 2002, Plaintiffs asserted securities claims under both the Securities Act of 1933 and the Securities Exchange Act of 1934. Plaintiffs claimed among many other things, that JPMorgan Chase's involvement in various prepaid forward transactions provided Enron with off-the-books structured finance loans improperly disguised to look like trades rather than debt. STB filed a motion to dismiss, which Judge Stein granted in March 2005. Judge Stein gave Plaintiffs the opportunity to re-plead, which they did in May 2005. STB again moved to dismiss for failure to plead any material misstatement and scienter. Judge Stein agreed, dismissing the case this time with prejudice. In today's opinion, the Second Circuit affirmed in all respects, holding that Plaintiffs failed to plead either a motive to defraud JPMorgan Chase shareholders or any material misstatement in the bank's disclosure of related-party transactions with Enron or the nature of its prepay transactions with Enron.

The Simpson Thacher team representing JPMorgan Chase in this matter included Bruce Angiolillo, Tom Rice, George Wang, Marcia Griffith and Scott Sukenick.