By Chris Bruce
Feb. 25 — The Delaware Supreme Court Feb. 25 dismissed a lawsuit by Providence, R.I., that alleged faulty oversight by top JPMorgan Chase & Co. executives, upholding a lower court that said allegations in the suit had already been addressed by a federal court in New York.
The brief order by Chief Justice Leo E. Strine, Jr. — which came one day after the case was argued — upheld a July 29, 2015, decision by the Delaware Chancery Court, which said Providence cannot relitigate claims that JPMorgan Chief Executive Jamie Dimon and others breached their fiduciary duties.
Providence, which brought the suit as a derivative action on behalf of JPMorgan, alleged failures of oversight and compliance from Jan. 1, 2005, through Jan. 7, 2014, in connection with a string of settlements and consent orders, saying stockholders bore the brunt of more than $2 billion in fines and penalties.
A JPMorgan spokesman did not immediately respond to a request for comment on the ruling Feb. 25.
In its 2015 decision, the Chancery Court said the U.S. District Court for the Southern District of New York considered and dismissed two suits involving the same parties as this case, and, in at least one instance, the same subject matter.
One suit, brought by Chaile Steinberg, a JPMorgan shareholder, was dismissed by the Southern District of New York July 16, 2014. The other suit, brought by two pension funds, was dismissed by the same court July 23, 2014.
Among other points, according to the Chancery Court, in each case, the Southern District held that the plaintiffs failed to show that a demand for action by the board would have been futile.
Such demands are required for derivative suits unless plaintiffs can show the demand would have been pointless.
To contact the reporter on this story: Chris Bruce in Washington at email@example.com
To contact the editor responsible for this story: Mike Ferullo at firstname.lastname@example.org
The ruling is at http://www.bloomberglaw.com/public/document/CITY_OF_PROVIDENCE_RHODE_ISLAND_derivatively_on_behalf_of_JPMORGA/1. The New York decisions are at http://www.bloomberglaw.com/public/document/Steinberg_v_Dimon_No_14_Civ_688_PAC_2014_BL_196933_SDNY_July_16_2 and http://www.bloomberglaw.com/public/document/CENTRAL_LABORERSTM_PENSION_FUND_and_STEAMFITTERS_LOCAL_449_PENSIO.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)