Dimon, JPMorgan Deny Board Failed in Zelle Fraud Claims Response

Directors at JPMorgan Chase & Co. rejected claims that they ignored alleged fraud on the Zelle money-transfer platform, arguing Wednesday before the Delaware Court of Chancery that there’s no evidence they violated federal regulations governing electronic transfers.

Anecdotes about Chase Bank customers not being reimbursed for unauthorized electronic transfers don’t meet the legal standards for successful oversight claims, said Audra Soloway, who represents most of the JPMorgan directors. Soloway of Paul, Weiss, Rifkind, Wharton & Garrison LLP said the lawsuit, brought by investors, should be dismissed.

JPMorgan and CEO Jamie Dimon joined the other directors in their motion to dismiss. ...