|  | | 2008 News and Press Releases | | |
SETTLEMENT NEWS:
ARS Suits Against JPMorgan Consolidated
Anne Urda
Securities Law 360. October 20, 2008
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EXCERPT: A federal district judge has opted to consolidate several securities fraud suits against JPMorgan Chase & Co. over its auction rate securities and chosen a lead plaintiff to spearhead the charge against the investment giant. On Friday, U.S. District Judge Richard Berman signed off on the consolidation request brought by Assif Group, which had been seeking to combine two new suits alleging JP Morgan marketed and sold certain auction rate securities as “highly liquid,” according to court documents. Auction rate securities are bonds and preferred stocks with interest rates or dividends that are reset periodically through an auction. The $330 billion market for auction rate securities went bust in mid-February amid growing panic over the widening subprime crisis. Without enough bidders willing to participate in periodic auctions, many who bought auction rate securities have been left holding financial instruments they are now unable to sell. |
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