JPMorgan Chase & Co. has agreed to pay $23 million to settle claims that it mishandled pension fund money by investing with Lehman Brothers.
A court document filed Friday shows that the New York bank denies any wrongdoing but agreed to settle the lawsuit to avoid the burden, expense and distraction of litigation. A U.S. 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 Inc.
Lehman's bankruptcy filing in September 2008 helped spark a credit crisis that plunged the nation into its deepest recession since the Great Depression.
A representative for JPMorgan did not immediately respond to a request for comment.
Paul Geller, an attorney for the plaintiffs said in an email that, "We are pleased with the resolution for our client and other class members," but noted that the case still requires court approval.
J.P. Morgan Chase shares closed unchanged Friday at $53.29 and added 2 cents in after-hours trading.