J.P. Morgan is nearing the finish of a lawsuit alleging market manipulation in precious metals contracts. A series of papers filed with the New York Southern District Court demonstrates this.
Plaintiffs Dominick Cognata, Melissinos Trading, LLC, Casey Sterk, Kevin Maher, Kenneth Ryan, Robert Charles Class A, L.P., Robert L. Teel, Mark Serri, Yuri Alishaev, Abraham Jeremias, and Morris Jeremias (collectively, the “Class Plaintiffs”) seek final approval of a class action settlement with defendant J.P. Morgan Chase & Co.
The settlement, reached in November 2021, calls for a $60,000,000 cash payment to eligible Class Members who were impacted by J.P. Morgan's manipulation of the prices of Precious Metals Futures traded on the Commodity Exchange Inc. (COMEX) and the New York Mercantile Exchange (NYMEX), as well as Options on Precious Metals Futures, from at least March 1, 2008, to August 31, 2016.
J.P. Morgan, in particular, was accused of using a manipulative practice known as “spoofing,” which entailed purposely placing orders to cancel those orders before execution to convey misleading and illegitimate supply and demand signals to an otherwise efficient market.
The Court determined that it would be able to approve the Settlement under Rule 23(e) by providing preliminary approval (2). The Class's response to the Settlement so far strengthens the case for ultimately accepting the Settlement.
Since the notice period began on January 10, 2022, the Class Notice has been mailed directly to over 29,251 potential Class Members, and there have been over 312,990 visits to the Settlement Website, which contains the Class Notice, Proof of Claim, and Release form, and other information about this action. Although the objection and opt-out periods are still two weeks away, there have been no objections and just one Class Member has sought exclusion from the Settlement.
This is seen as a positive signal from the Class that the Settlement resolves the Class's claims favorably.
The Class Plaintiffs ask the Court to adopt the Settlement and the Distribution Plan, certify the Settlement Class, and issue the proposed Final Approval Order and Final Judgment dismissing the claims against J.P. Morgan with prejudice.
About J.P. Morgan
J.P. (John Pierpont) Morgan (1837-1913), one of the most influential financiers of his day, helped fund railways and form U.S. Steel, General Electric, and other significant enterprises. In the late 1850s, he joined his rich father in the banking industry, and in 1871, he established a partnership with Philadelphia financier Anthony Drexel. In 1895, their business was renamed J.P. Morgan & Company, the forerunner of today's banking behemoth J.P. Morgan Chase. During various economic crises, notably the 1907 panic, Morgan utilized his clout to assist calm American financial markets. However, he was accused of wielding too much authority and of manipulating the nation's financial system for personal advantage. The Gilded Age tycoon spent a large chunk of his fortune collecting a massive art collection.
