This lawsuit arose out of the purchase by Plaintiff, an individual investor, of approximately $35 million of asset backed sewer revenue securities from defendant JPMorgan. When the value of the securities suffered a significant drop in value, Plaintiff filed suit against JPMorgan alleging violations of the Texas Securities Act. Specifically, Plaintiff alleged that JPMorgan was selected as the underwriter and swap provider for the securities, by means of unlawful payments, which JPMorgan failed to disclose. Plaintiff alleged that, because JPMorgan had sold the securities by means of materially false statements and omissions, Plaintiff was entitled to rescission under the Texas Securities Act.
On December 17, 2010, the trial court denied JPMorgan’s motions for summary judgment on Plaintiff’s claims.
The case proceeded to trial in January 2012 in Harris County, Texas before the Honorable Mike Engelhart. Two days into trial, the parties entered into a confidential settlement which was favorable to our client.