JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and board members won the dismissal of an investor lawsuit over $2.6 billion in penalties and settlements paid by the bank because of its relationship with convicted Ponzi scheme operator Bernard Madoff, Bloomberg reported yesterday. U.S. District Judge Paul Crotty threw out the suit, which sought damages on behalf of the bank based on claims that JPMorgan executives and directors turned a blind eye to Madoff’s fraud. The investors claimed that the defendants harmed the bank through breaches of fiduciary duty, securities law violations and waste of corporate assets. Judge Crotty said that the investors were not excused from the requirement that they demand that JPMorgan’s board pursue the legal claims before filing the suit. The case is Central Laborers’ Pension Fund v. Dimon, 14-cv-01041, U.S. District Court, Southern District of New York (Manhattan).
