(Photo: Reuters/Joshua Roberts/Files)
JPMorgan Chase & Co shareholders cannot pursue a lawsuit to force Chief Executive Jamie Dimon and other officials to pay damages to the largest U.S. bank for their alleged ignorance of red flags signaling Bernard Madoff’s Ponzi scheme, a federal appeals court ruled on Wednesday.
The 2nd U.S. Circuit Court of Appeals in Manhattan upheld a lower court dismissal of claims that Dimon and 12 other executives and directors breached their duties by turning a blind eye to Madoff, an important client for two decades, to maintain the bank’s lucrative relationship with him.
Citing applicable Delaware law, the appeals court said the shareholders did not show that the defendants “utterly failed to implement any reporting or information system or controls” that might have caught Madoff’s fraud.
The original article can be found at reuters.com