J.P. Morgan Chase reached an “agreement in principal” to settle a class-action lawsuit filed by the $1.5 billion American Federation of Television and Radio Artists Retirement Fund, New York, and others claiming losses from the bank's securities lending program.
The settlement is to be announced on the plaintiffs' website, according to a statement provided Tuesday by Stephanie Cirkovich, a spokeswoman for U.S. District Court in New York, where the AFTRA fund filed its suit.
“The parties are drafting a formal settlement agreement, to be submitted to the court for approval within approximately three weeks,” according to the statement. “The settlement terms will remain confidential until the agreement is submitted to the court. The settlement is subject to the court's approval and to certain other conditions.”
The fund sued in 2009, claiming it lost money that J.P. Morgan invested for it in medium-term notes issued by Sigma Finance Corp., a structured investment vehicle that collapsed in 2008.
The $507 million Imperial County Employees' Retirement System, El Centro, Calif., also is a plaintiff in the lawsuit