On June 14, 2005, JPMorgan Chase agreed to pay $2.2 billion to settle with investors over claims that shareholders were misled about Enron Corporation revenue because JPMorgan hid the company's debt. The announcement followed Citigroup's decision to settle an Enron-related class action lawsuit for $2 billion earlier in the same week, and preceded a record $2.4 billion settlement from the Canadian Imperial Bank of Commerce (CIBC) in August 2005. All of the settlements resulted from the Enron investing scandal of 2001, when shareholders in the American energy company lost nearly $11 billion after stock prices plummeted from $90 per share to less than $1 following revelations regarding billions of dollars in hidden debt and failed projects. Enron founder Kenneth Lay was convicted on fraud and conspiracy charges in 2006 but died before he could be sentenced.
Learn more about JPMorgan, Enron, and the laws governing corporate fraud from the JURIST news archive.