JP Morgan Chase securities lending litigation FAQs
I have heard that the AFTRA Retirement Fund is involved in a lawsuit regarding losses incurred by the Fund. What is this case about?
The AFTRA Retirement Fund, along with two other pension plans (the Imperial County Employees Retirement System and the Manhattan and Bronx Surface Transit Operating Authority and Pension Plan), is a lead plaintiff in a class action lawsuit against JP Morgan Chase. The suit relates to JP Morgan Chase’s role as a provider of securities lending services to the Fund and its management of certain cash collateral on behalf of the Fund.
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What is the current status of the case?
After reaching an agreement to settle the case in February, the parties in Board of Trustees of the AFTRA Retirement Fund v. JPMorgan Chase Bank,N.A drafted and submitted a formal settlement agreement to the Court for approval on March 16. The settlement is subject to the Court’s approval and to certain other conditions.
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Does this loss affect my pension?
No. The Retirement Fund maintains a diverse portfolio of investments, and the losses related to this lawsuit represent less than two tenths of one percent (approximately 0.14%) of the Fund’s overall total assets.
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Is this a new case?
No. The suit was filed in early 2009 as a result of events that took place in 2008.
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Why did the Fund join this class action suit?
While the Fund’s losses related to this suit are relatively small compared to its total assets, the matter was judged to be important enough to warrant actively pursuing compensation for the losses on behalf of Fund participants.
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How does the Fund oversee its investments, and what is the Fund’s general investment philosophy?
The Board of Trustees’ Investment Committee works with Fund staff and consultants to oversee and manage the Fund’s investments, and the securities lending investments cited in the suit represent only a small part of the Fund’s diverse portfolio. The Fund’s long-term investment objectives seek to maximize returns while preserving capital to fund benefits for participants, as the Fund has done for more than 50 years.
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How can I learn more about this litigation?
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