JPMorgan pays to settle Lehman case

JPMorgan Chase has agreed to pay $23m (€17.2m) to settle claims that it mishandled pension fund money by investing with Lehman Brothers.

A court document filed today shows that the bank denies any wrongdoing but agreed to settle the lawsuit to avoid the burden and expense of litigation.

A US District Court must approve the settlement before it is final.

The lawsuit was filed by the Operating Engineers Pension Trust in 2009.

They claim JPMorgan handled its funds recklessly by investing in notes issued by failed investment firm Lehman Brothers Holdings.

Lehman’s bankruptcy filing in September 2008 helped spark a credit crisis that plunged the United States into the recession.