If you want to sue a financial firm over investment losses, you may have to take a number and get in line.
The second of what may soon be a barrage of big money lawsuits recently was filed against JPMorgan Chase, claiming mismanagement of an investment account.
Plaintiff Leonard Blavatnik, the billionaire Russian-American investor, ranked No. 40 among the richest Americans by Forbes magazine, alleged in his suit that JPMorgan' s financial advice cost his Access Industries to lose $98 million by betting on shaky subprime mortgage securities, The New York Times reported.
Named in a draft of the complaint is Ted. C. Ufferfilge, a JPMorgan adviser, who allegedly reported to Access that its money was being invested in "conservative instruments," rather than the high-risk mortgages which contributed to the national economic collapse.
While Chase was buying subprime securities for Access, " ... the bank itself was unwinding its positions in similar investments," an Access spokesman said.
In a counterclaim, JPMorgan, claimed Access was a "sophisticated investor and well aware of the nature of the investments."
Access, created by Blavatnik in 2006 as an "enhanced cash management" fund, was expected to earn a modest return and maintain sufficient liquidity for business ventures.
In return for JPMorgan's active management of the fund, Access paid the firm more than $1 million in fees.
In May, British firm Ambac Financial filed a similar suit against JPMorgan Investment Management, claiming its assets were invested in "inappropriate securities."