JPMorgan Unable to Resolve Foreclosure Fraud Suit in Mediation

JPMorgan Chase Bank NA and four whistleblowers were unsuccessful in their attempt to resolve a $430 million False Claims Act foreclosure-related lawsuit in mediation.

Settlement negotiations are at an impasse “despite everyone’s best efforts,” a mediator told the U.S. District Court for the Eastern District of Texas Thursday.

The whistleblowers, three of whom are former JPMorgan employees, say the company violated the FCA while participating in a federal housing foreclosure prevention program through which the company allegedly received $430 million in payments.

JPMorgan allegedly knew it violated rules under the Home Affordable Modification Program, which was designed to help people ...