JPMorgan reports progress in settlement talks in spoofing lawsuit
A lawsuit accusing JPMorgan of manipulating the U.S. Treasury futures market appears to be edging closer to resolution, as indicated by the latest document filings with the New York Southern District Court. A letter filed today by JPMorgan updates on the status of the proceedings.
Let’s recall that, on October 26, 2020, Endeavor Trading, LLC and Breakwater Trading LLC abandoned their claims against JPMorgan in this case. Back then, JPMorgan indicated it would try to settle the matter with the rest of the plaintiffs. These include Budo Trading LLC, John Grace, Thomas Gramatis, Charles Herbert Proctor, III, and Robert Charles Class A, L.P.
Today, JPMorgan filed a status report with the Court, explaining that the parties have taken substantial steps towards resolution. These steps include:
- agreeing to mediate,
- entering into a confidentiality agreement that will govern the mediation,
- selecting a mediator, and
- discussing procedures, including information exchanges, for the forthcoming mediation.
In light of the fact that no discovery has yet occurred, the parties anticipate that several months are needed to complete the mediation process.
Let’s recall that this action has been brought by a class encompassing:
“All persons or entities who transacted in Treasury Futures or options on Treasury Futures traded on a United States exchange during the period January 1, 2009 through the present (the “Class Period”), where such persons or entities were domiciled in the United States or its territories. Excluded from the Class are the Defendants and any parent, subsidiary, affiliate, employee, agent or co- conspirator of any Defendant.”
The defendants are JP Morgan Chase & Co., JP Morgan Clearing Corp., JP Morgan Securities LLC, JP Morgan Securities LLC, and John Does 1-25. The plaintiffs accuse the defendants of unlawful and intentional manipulation of U.S. Treasury futures contracts and options on those contracts that trade on United States-based exchanges.
Throughout the Class Period, JPMorgan is alleged to have routinely engaged in spoofing at the expense of the plaintiff and the class, successfully manipulating the Treasury Futures trading market to benefit their own trading positions.