JPMorgan, CEO Dimon Exit Zelle Fraud Claims Lawsuit in Delaware

A Delaware judge has dismissed with prejudice an investor’s lawsuit alleging that directors at JPMorgan Chase & Co., including CEO Jamie Dimon, ignored red flags about the bank’s response to fraud on the Zelle money-transfer platform.

Chancellor Kathaleen St. Jude McCormick, chief judge of the Court of Chancery, agreed with Dimon and JPMorgan’s other directors who had argued that the lawsuit cited only anecdotes in media reports about Chase Bank customers victimized by alleged fraud, but no evidence the bank violated the Electronic Funds Transfer Act and its implementing regulation.

“The anecdotes in the articles do not describe any ...