Louisiana Pension Fund Sues JPMorgan for Breach of Fiduciary Duty

November 8, 2011 (PLANSPONSOR.com) – JPMorgan Chase & Co was sued by Louisiana’s police pension fund, which claims the bank’s $88.3 million settlement with the U.S. Treasury Department stemmed from a breach of fiduciary duty by its directors, reports Bloomberg.  

The complaint, filed in New York State Supreme Court in Manhattan on Monday, follows an August 25 announcement that the company agreed to resolve alleged violations of international sanctions programs, including Cuban assets control and anti-terrorism regulations.

According to Bloomberg, the Louisiana Municipal Police Employees Retirement System, an investor in JPMorgan that provides retirement benefits for full-time municipal police officers in Louisiana, accused the current directors of the New York-based bank, including Chairman Jamie Dimon, of “knowingly” allowing and rewarding violations of Treasury Department programs.

The Treasury said that JPMorgan, through its correspondent banks, maintained prohibited financial transactions with sanctioned entities in countries including Cuba and Iran. The JPMorgan payment agreed upon by the Office of Foreign Assets Control (OFAC involves “egregious” violations for five years, according to a Treasury Department statement.