JPMorgan, Simpson Sued Over GM Loan Mistake

Bloomberg reported that one of the participants in a $1.5 billion term loan that JPMorgan Chase made to General Motors before its bankruptcy is now suing the bank and its lawyers at Simpson Thacher & Bartlett.

Bloomberg said the Employees’ Retirement System of the City of Montgomery, Alabama, filed a class action in federal court in Manhattan against the bank and Simpson Thacher.

Bloomberg noted the reason for the suit was a mistake in the recording of the security interest in the loan, initially made by an associate at Mayer Brown but not caught by those reviewing the documents at both JPMorgan and Simpson Thacher.

Read the full report from Bloomberg here.

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