It’s not our fault! They say. So they’re suing JPM.
CMMF claims that when JPMorgan was retained in May 2006, it was given broad discretion in how it invested the funds but its goal was to “provide a high level of current income consistent with low volatility,” explains Francesco Guerrera at the Financial Times.
The two sides disagree on how JPM allocated the funds. Blavatnik says JPM wrongly invested 46% of his company’s money in asset backed securities. “Wrongly” because, his side argues, their agreement was to cap CMMF’s investment in the risky assets at 20%.
Originally the lawsuit brought four claims against JPM. The court dismissed two of them – breach of fiduciary duty and negligence.
The judge has agreed to hear the two remaining claims – breach of contract and negligent misrepresentation.
And JPM says they will fight the case “vigorously.”
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