| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers P > Headlines for Peregrine Financial Group, Inc. > News item |
Peregrine trustee gets OK on deal resolving $200 million of claims
By Kali Hays
New York, April 16 - Peregrine Financial Group Inc.'s Chapter 7 trustee, Ira Bodenstein, received court authorization to enter into a settlement agreement with JPMorgan Chase Bank, NA and a class of customer plaintiffs, according to an attorney familiar with the case.
As previously reported, the customer plaintiffs filed an amended class-action lawsuit against Russell Wasendorf Sr., Russell Wasendorf Jr., U.S. Bank, NA and JPMorgan in December 2012.
The lawsuit asserted claims against JPMorgan for breach of contract, negligence and breach of fiduciary duty and sought damages in excess of $200 million.
The customer class includes all persons or entities who formerly maintained or currently maintain commodity futures or options accounts with Peregrine or were or are customers with accounts opened to trade futures or options on futures.
On requesting approval of the settlement, Bodenstein said it was the Peregrine estate's best opportunity to reduce and cap JPMorgan's indemnity claims, obtain the release of more than $14 million being held by JPMorgan as security for its contingent claims and resolve the estate's and the customers' claims against JPMorgan in exchange for $1.25 million from JPMorgan.
Bodenstein said the settlement also allows the parties "to implement a cooperative course of proceeding with the customer plaintiffs" in connection with claims against remaining class-action defendants and the disbursement of any settlement proceeds and an account of the remaining claims in the lawsuit.
Peregrine is a Chicago-based futures broker. The company filed for bankruptcy on July 10, 2012. The Chapter 7 case number is 12-27488.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.