Ohio Attorney General Mike DeWine has filed a motion for his state's pension funds to join other pension funds in leading a class-action lawsuit against JPMorgan Chase (JPM) for losses related to its chief investment office.
The motion alleges that JPMorgan Chase issued false and misleading statements about its trading activity. The New York bank described "risky and speculative trading strategies" as "hedges and risk management" devices, DeWine's office said. Ohio pension funds have lost more than $27.5 million as a result of the trades, DeWine's office said.
JPMorgan has recorded at least $5.8 billion in losses from the trades made in its CIO.
Others filing for lead plaintiff status in the lawsuit include public pension funds in the states of Oregon and Arkansas in addition to a Swedish national pension fund. The Ohio pension funds involved include the Ohio Public Employees Retirement System, the School Employees Retirement System of Ohio and the State Teachers Retirement System of Ohio.
"The filings allege that pension fund managers acting on behalf of Ohio retirees were given false and misleading information by JPMorgan Chase that hid the true nature of the bank's risky trades, causing Ohio teachers, school employees and public employees to lose tens of millions of hard-earned retirement dollars," DeWine said in a news release.
Ohio's motion was made in the U.S. District Court for the Southern District of New York.