Local shareholders group denied lawsuit ability in Madoff case

By Gary Scott on January 14, 2016 at 1:21pm

A Jacksonville-based pension fund got some disappointing news recently regarding its efforts to sue the CEOs of a major financial corporation.

According to wire reports from Reuters, a federal appeals court in New York ruled last week that shareholders for JPMorgan Chase and Company can’t pursue a lawsuit to force Jamie Dimon, the chairman and president, and other officials to pay damages to the bank related to the Bernie Madoff Ponzi scheme.

A lower court dismissed claims in 2014 that Dimon and a dozen other executives breached their duties by ignoring red flags signaling the scheme for decades to maintain the relationship the bank had with Madoff.

Central Laborers’ Pension Fund in Jacksonville, along with Steamfitters Local 449 Pension Fund in Pittsburgh, were the shareholders pursuing the matter.

The court ruling indicated the shareholders did not show that Dimon and the other officials completely failed to implement any controls that might have caught the fraud.

Madoff is serving a 150-year prison sentence after pleading guilty to fraud charges in 2009.

Several messages left for the executive director of the Central Laborers’ Pension Fund from WLDS-WEAI went unreturned.