JPMorgan settlement

NEW YORK: JPMorgan Chase has agreed to pay $1.42 billion to settle most of the litigation relating to the bankruptcy of Lehman Brothers, according to court documents seen on Tuesday. Lehman Brothers had accused JPMorgan Chase, which was its primary lender, of draining its liquidity just before the US banking and financial services company declared bankruptcy in September 2008, a move that shook the global financial system to the core. The cash settlement resolves most of the lawsuit filed by Lehman Brothers, which claimed that JPMorgan illegally abused its position as the primary lender in order to put itself ahead of other creditors to get their money, thus accelerating Lehman Brothers’ bankruptcy.