Ill. Federal Judge Dismisses Investors’ Action Accusing JPMorgan of Misrepresenting Reinsurer’s Profitability

CHICAGO — An Illinois federal judge has dismissed an action accusing JPMorgan of misleading an investment management company into investing $5 million in an unprofitable reinsurance company, ruling that the bank’s forward-looking projections did not constitute false statements of fact.

In a Sept. 26 order, Judge Mary M. Rowland of the U.S. District Court for the Northern District of Illinois further ruled that the plaintiffs failed to adequately allege that JPMorgan owed them a fiduciary duty.

Plaintiffs Green Dolphin Capital LLC, MK 2011, TM 2011 LLC and Gary Rappeport are affiliates of investment management firm Far Horizons Capital LLC, and …