JPMorgan Chase must face a lawsuit in which shareholders accused it of concealing risks that surfaced when it lost at least $6.2 billion in 2012 over trades made by Bruno Iksil, the so-called London Whale.
US District Judge George Daniels in Manhattan said shareholders adequately alleged that JPMorgan, CEO Jamie Dimon and former CFO Douglas Braunstein misled them about the bank's ability to manage risk before the losses at its Chief Investment Office (CIO) surfaced.
Daniels also dismissed claims against Ina Drew, who led the CIO; Mike Cavanagh, who preceded Braunstein as CFO; and Barry Zubrow, who had been the bank's chief risk officer.
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