JPMorgan wins dismissal of Madoff buyers' U.S. lawsuit

The big apple JPMorgan Chase & Co (JPM.N) on Wednesday won dismissal of a lawsuit added with the aid of former customers of Bernard Madoff who blamed the U.S. bank for gambling an lively function in his Ponzi scheme and ignoring crimson flags of his fraud.

U.S. District choose John Koeltl in big apple stated the plaintiffs failed to reveal that JPMorgan had particular manipulate over Madoff's fraud.

He also stated the allegations cautioned at most that JPMorgan and its personnel "were negligent, no longer fraudulent" in managing Madoff, a main client for 2 many years previous to his December 2008 arrest.

Koeltl also disregarded several nation law claims, saying they have been preempted by federal regulation.

Helen Chaitman, a attorney representing the plaintiffs, did not without delay reply to a request for comment.

JPMorgan spokesman Brian Marchiony said the big apple-based totally bank is pleased with the choice.

The lawsuit changed into delivered on behalf of an anticipated 2,500 "net winners" who withdrew more money from their bills at Bernard L. Madoff funding Securities LLC than they invested.

They sought to keep JPMorgan accountable for failing to stop its dating with Madoff although it knew or must have acknowledged his enterprise changed into a fraud, and failing to document suspicious hobby to the U.S. Securities and change commission.

Many net winners say Irving Picard, a court docket-appointed trustee liquidating Madoff's company, undervalued their claims and have filed lawsuits to keep different people and companies that dealt with Madoff liable for their alleged losses.

The JPMorgan lawsuit began in March 2014, after the financial institution agreed to pay $2.6 billion to settle other Madoff litigation, and in a deferred prosecution settlement with the U.S. authorities acknowledged duty for failing to prevent Madoff.