Dimon, JPMorgan Board Sued for Zelle Fraud Claims Response (1)

An investor sued JPMorgan Chase & Co. board members, including CEO Jamie Dimon, saying they’re ignoring red flags about the bank’s inadequate response to alleged fraud involving the Zelle money-transfer app.

The lawsuit, made public Wednesday, accuses the board of turning a blind eye as the bank failed to comply with federal laws that require reimbursing customers victimized by alleged fraud at Zelle. The allegation follows criticism from lawmakers who say banking executives need to do more to address fraud claims.

The unauthorized transfers allegedly totaled $500 million in 2021 alone. Zelle parent Early Warning Services LLC, which is ...