As if JPMorgan Chase (JPM) didn't have enough to contend with -- a $2 billion-and-counting from a series of risky trades; regulators and the FBI poking around because of the trades; and the embarrasing loss of face that has ensued -- now it has been hit with two lawsuits from shareholders accusing the bank of being imprudent.
Reuters reported that the lawsuits were filed by California shareholder James Baker on behalf of JPMorgan Chase and by shareholder Saratoga Advantage Trust financial services portfolio on behalf of owners of common stock.
The Baker lawsuit accuses CEO Jamie Dimon, Chief Financial Officer Douglas Braunstein and board members of breaching fiduciary duty, unjust enrichment and wasting corporate assets, Reuters said.
The Saratoga lawsuit claims Dimon, et al., lied to investors and kept material information from them during an earning conference call with investors on April 13 when he said the trades were "a tempest in a teapot."
"Defendants misrepresented the losses and risk of loss to the company arising from massive bets on derivative contracts related to credit indexes reflecting interest rates on corporate bonds," Reuters reported the complaint said. "These derivative bets went horribly wrong, resulting in billions of dollars in lost capital for the company and billions more in lost market capitalization for JPMorgan shareholders."
Reuters said a spokesman for JPMorgan declined to comment on the lawsuits.