JPMorgan Hit With Investor Suit After $920 Million Spoofing Fine

JPMorgan Chase & Co. failed to tell investors that some of its traders were manipulating the precious metals and Treasury futures markets, leading to a record $920 million spoofing penalty, according to a suit filed in federal court in New York.

The investment bank didn’t disclose that it lacked sufficient “controls and compliance protocols to enable it to identify and stop the misconduct,” the would-be class says in a U.S. District Court for the Eastern District of New York complaint alleging a 2% stock drop.

JPMorgan didn’t tell investors that its “earnings in the physical commodity market were, at least ...