Pension fund ABP settles out of court with JPMorgan Chase
Tuesday 11 December 2012
Dutch pension fund ABP, one of the biggest pension funds in the world, has reached an out of court settlement with JPMorgan Chase over mortgage portfolios bought in 2006 and 2007.
Civil service pension fund ABP claimed it had purchased the mortgage portfolios based on 'false and misleading statements' and that these securities were far riskier than had been represented. Financial terms were not disclosed.
JPMorgan Chase denied the claims and continues to do so, ABP said in a statement.
ABP was forced to sell the mortgage packages at a considerable loss and went to court at the end of last year in order to win compensation.
'ABP is very pleased to have reached this settlement – within almost a year of filing the complaint - and is pleased that JPMC was willing to reach a mutually satisfactory conclusion of this litigation,' the statement said.