J.P. Morgan Chase to settle suit for $450M

April 21, 2006 at 1:45 PM

NEW YORK, April 21 (UPI) -- New York's J.P. Morgan Chase & Co. agreed to pay $425 million to settle civil charges of improperly awarding hot new stock issues.

The financial-services company cut a deal, which requires court approval, with investor plaintiffs to settle the federal case, The Wall Street Journal reported Friday.

Underwriters like J.P. Morgan Chase were accused in the suit of requiring investors who got shares of hot initial public offerings during the stock market bubble of 1999 and 2000 to buy more shares at higher prices once trading began. That had the effect of artificially inflating the price of the IPO shares, plaintiffs argued.

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