Legal News

Security Interest Error Leaves JPMorgan Chase Vulnerable to Class-Action
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

JPMorgan Chase

Summary: Members of the term loan given to General Motors by JPMorgan Chase Bank are suing for gross negligence and breach of contract after an error was discovered in the original documents.

A lawsuit has been filed against JPMorgan Chase & Co and their lawyers at Simpson Thacher & Bartlett LLP over the security interest on the $1.5 billion term loan the bank gave to General Motors Corp. A contributor in the loan is suing since the mistake should have been caught by JPMorgan and Simpson Thacher.

  
What
Where


The mistake in the recording of the security interest by an associate at Mayer Brown has made it possible for the now bankrupt carmaker to escape paying the loan back. Without that security interest, General Motors would not have to pay the full loan back.

The Employees’ Retirement System of the City of Montgomery, Alabama filed the class action in Manhattan’s federal court. They say they represent 400 members of the term loan. They are claiming the bank didn’t notify them of the error as a way to avoid running into the statute of limitations. They say they only became aware of the mistake in May. They were hit with a lawsuit to recover payments made on the loan.

The lawsuit claims the bank has breached the contract and is grossly negligence whereas Simpson Thacher committed malpractice. The lawsuit will be Employees’ Retirement System of the City of Montgomery v. JPMorgan Chase Bank NA, 15-6002, U.S. District Court, Southern District of New York (Manhattan).

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Source: http://www.bloomberg.com/news/articles/2015-08-03/jpmorgan-simpson-sued-over-mistake-in-gm-loan-business-of-law

Photo: truthinmedia.com





 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top