A US federal appeals court in New York has dismissed the lawsuit brought by JPMorgan shareholder Ernesto Espinoza against the bank over ‘London Whale’ trading scandal that caused $6.2bn in losses.
Following the judgment, JPMorgan Chase officials including CEO Jamie Dimon will not have to face the charge that alleged that they failed to properly investigate the scandal.
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The 2nd U.S. Circuit Court of Appeals in New York said a lower court judge did not abuse his discretion by dismissing the lawsuit by Espinoza.
The district court dismissed Espinoza’s complaint, finding that he had not pleaded facts showing that the JPMorgan Board of Directors had wrongfully refused the demand for action.
JPMorgan executives and directors have won three investor lawsuits dismissals in New York and Delaware that accused the officials with negligence to prevent the losses incurred in 2012 by Bruno Iksil, who was known as the London Whale.
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By GlobalData
