JPMorgan to Pay $60 Million to Resolve Spoofing Lawsuit Concerning Precious Metals

JPMorgan Chase & Co (JPM.N) agreed to $60 million in settlement of class-action litigation brought by investors who claimed that the largest U.S. bank intentionally manipulated prices for precious metals options and futures.

The U.S. government conducted extensive investigations into spoofing, a type of illegal trading in precious metals.

JPMorgan didn’t admit to wrongdoing when it agreed to the settlement. This covers traders in precious metals options and futures from March 2008 to August 2016. It requires approval by a Manhattan federal judge.

The agreement was called “substantially fair” by lawyers representing investors, citing, among other things, the risk of continuing litigation.

According to the lawyers, the payout would cover approximately 7% of the $915 million in classwide damages.

JPMorgan declined to comment.

Spoofing refers to traders placing orders that they plan to cancel in order to manipulate prices and benefit their market positions.

JPMorgan entered into a deferred prosecution arrangement in September 2020 and agreed to pay 920 million and a $436million criminal fine to end U.S. government investigations into spoofing of precious metals.

In September, the New York-based bank reached a $15.7 Million settlement agreement with investors over Treasury Spoofing.

The precious metals investor’s lawyers plan to collect up to one-third of their settlement or $20 million to cover legal fees.

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