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JPMorgan Beats Insurers in Appeal Over $140M Bear Stearns Settlement

November 23, 2021

New York’s highest court ruled on Tuesday that JPMorgan Chase & Co. is entitled to insurance coverage for $140 million of a U.S. Securities and Exchange Commission settlement with the former Bear Stearns Cos. over improper mutual fund trading.

Reversing a lower court ruling, the Court of Appeals ruled 6-1 that the $140 million derived from estimates of wrongful customer profits and investor harm, and was not a “penalty” that would excuse JPMorgan’s insurers from providing coverage.

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