A Financial Industry Regulatory Authority (FINRA) arbitration panel ordered JPMorgan Securities LLC of J.P. Morgan Chase & Co. to pay a client $1.9 million in compensatory damages as a result of claims that found J.P. Morgan had failed to disclose key information related to auction-rate securities.
Ashley Furniture alleged that J.P. Morgan failed to advise Ashley Furniture of the riskiness of auction-rate securities and also failed to disclose that JPMorgan itself was directly involved in managing auctions—a key conflict and and blatant instance of firm misconduct. J.P. Morgan denied the allegation.
In this case, heard over 13 days, the award of $1.9 million to J.P. Morgan's client, Ashley Furniture Industries, was just 7.1% of the $26.7 million in damages Ashley Furniture sought. How or why the FINRA Arbitration Panel reached its decision to award $1.9 million is not explained in the award.
If you suspect a firm or broker has withheld material information that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at 818-760-9880 for an investigation and consultation.