As the fallout continues from news of JPMorgan Chase's $2 billion trading loss, a new lawsuit has been launched against the company, claiming the company abused its fiduciary duties and torpedoed their retirement holdings.
According to Reuters, the suit, filed in U.S. District Court in New York City, alleges that JPMorgan executives Jamie Dimon and Ina Drew violated their 401(k) responsibilities by using company stock as an investment option, not being clear about the stock's risks and not moving the participants to safer choices.
The suit is seeking class-action status for current and former employees who took part in JPMorgan retirement plans.
"The plans suffered hundreds of millions of dollars of losses," according to the complaint. "If defendants had discharged their fiduciary duties to prudently manage and invest in the plans' assets, the losses suffered by the plans would have been minimized or avoided."
The suit was launched by Gregory Scrydloff, a longtime employee of Chase Investment Services, according to records.