Class Action Against JPMorgan Can Go Forward

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JPMorgan Chase & Co. lost petition for dismissal of a lawsuit in which consumers accused the second- biggest U.S. bank of wrongly cutting home-equity lines of credit.

U.S. District Judge Rebecca Pallmeyer in Chicago allowed case against JPMorgan Chase & Co. to go forward on some claims while dismissing allegations that the lender had engaged in fraudulent practices.

The ruling comes in a consolidated class action, or group lawsuit, alleging that the lender had retracted or crimped those lines of credit without any justification for doing so.    The bank had sought to dismiss the action in its entirety.

Justice Pallmeyer stated in her decision that plaintiffs’ allegations that defendant reduced or suspended their HELOCs without adequate justification are sufficient to state claims for breach of contract under Minnesota, California, Texas and Delaware law. 

The next step for the plaintiffs is to seek class-wide certification.    According to some legal experts, there are thousands of similarly satiated potential class members.

Anna Timone (195 Posts)

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