X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MEMORANDUM OPINION & ORDER   In this action, Plaintiffs Mary Frances Wagley, James Wagley, Anne Wagley, and Mary Copp claim that Defendants JPMorgan Chase Bank, N.A. (“Chase”), JPMorgan Securities LLC, JPMorgan Investment Management, JPMorgan Distribution Services, Inc., and JPMorgan Chase & Co. (“JPMC,” and together with its affiliates, “JPMorgan”) mismanaged a trust of which they are the beneficiaries. The Amended Complaint alleges breach of fiduciary duty, aiding and abetting breach of fiduciary duty, and unjust enrichment. Defendants have moved to dismiss the Amended Complaint. (Dkt. No. 51) For the reasons stated below, Defendants’ motion to dismiss will be granted in part and denied in part. BACKGROUND I. FACTS1 Plaintiffs are beneficiaries of the Mary Penney Wagley Irrevocable Trust (the “Trust”), which was established in 1934. (Am. Cmplt. (Dkt. No. 21)

1, 18) Defendant Chase administers the Trust as its trustee. (Id. 2) The Amended Complaint alleges that, in an effort “to make up for lost earnings following the 2008-2009 financial crisis,” Chase and its parent company, JPMC, directed its sprawling asset management business to systematically steer the assets of captive clients such as Plaintiffs into unsuitable, self-dealing transactions that enriched JPMorgan to the detriment of [the Trust] and JPMorgan’s fiduciary obligations…. Under [Chase's] failed stewardship, the growth of the [] Trust has consistently lagged far behind the returns achieved by comparable Penney family endowments and widely recognized market benchmarks…. As of the present date, the [] Trust’s underperformance has accumulated into a shortfall of millions of dollars of principal value. (Id.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More

INTELLECTUAL PROPERTY PROSECUTION PARALEGAL - NEW JERSEY OR NEW YORK OFFICESProminent mid-Atlantic law firm with multiple regional office lo...


Apply Now ›

Experienced Insurance Defense Attorney.No in office requirement.Send resume to:


Apply Now ›

The Republic of Palau Judiciary is seeking applicants for one Associate Justice position who will be assigned to the Appellate Division of ...


Apply Now ›