J.P. Morgan Chase

A class action lawsuit was filed against dozens of banks for allegedly cheating investors out of hundreds of millions of dollars from initial public offerings during the 1990s market boom. The class claimed banks awarded shares of initial offerings to favored clients in return for lucrative investment banking business opportunities. The lawsuit also alleged the banks made deals with investors to purchase aftermarket shares to artificially drive up prices and create misleading research to lure investors into buying. J.P. Morgan became the first of the 55 investment banks named as defendants to settle its part of the class action by agreeing to pay a $425 million settlement. (Apr-21-06) [INTERNATIONAL HERALD TRIBUNE]