JPMorgan Board Gets Message Apps-Based Fraud Claim Thrown Out

JPMorgan Chase & Co. directors won’t have to face the allegation they fraudulently concealed issues with employees’ communications on personal email, text message, and WhatsApp, but the shareholder can refile the derivative claim and pursue state law allegations, a US judge ruled.

Lase Guaranty Trust, a JPMorgan shareholder, alleged that certain members of the investment bank’s board filed a misleading 2021 proxy statement that touted the company’s compliance but omitted the widespread use of unapproved communications channels.

The plaintiff, however, didn’t make a demand on the board before filing the derivative complaint and failed to state its Securities Exchange Act ...