Lawyers for the investors called the accord “substantively fair,” citing among other reasons the risks of continued litigation.
JPMorgan Chase and Co consented to pay $60 million to settle class-activity litigation by investors who blamed the biggest U.S. bank of deliberately controlling costs of valuable metals fates and options. The settlement revealed on Friday originated from sprawling U.S. government investigations into a form of illicit exchanging valuable metals and U.S. Treasury markets, known as spoofing. JPMorgan didn’t concede wrongdoing in consenting to the settlement, which covers dealers in valuable metals futures and choices from March 2008 to August 2016 and requires endorsement by a federal judge in Manhattan.
The payout would recover about 7% of the estimated $915 million of classwide damages, the lawyers added.
JPMorgan declined to comment.
Spoofing is where traders place orders they intend to cancel, hoping to move prices to benefit their market positions.
In Sept. 2020, JPMorgan entered a deferred prosecution agreement and agreed to pay $920 million, including a $436 million criminal fine, to settle U.S. government probes into spoofing in precious metals and Treasuries.
The New York-based bank in September reached a $15.7 million settlement with investors over Treasury spoofing.
Lawyers for the precious metals investors plan to seek up to one-third of their settlement, or $20 million, to cover legal fees.
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