Judge Robert Patterson
A class of persons transacting in COMEX silver futures and options contracts in June 2007, and from March 17, 2008, to Oct. 27, 2010, claimed J.P. Morgan Chase and others violated Commodity Exchange Act §§9(a) and 22(a) and §1 of the Sherman Act. Their complaint was dismissed for failure to adequately plead scienter, the existence of artificial prices, or causation. They also failed to allege the existence of a conspiracy to manipulate market prices. Denying plaintiffs’ motion to file an amended class action complaint, the court dismissed their lawsuit. Their proposed allegations did not establish a claim under the Commodity Exchange Act. Alleging that defendants knew that certain actions might impact the COMEX silver futures market was insufficient to show they acted with intent to cause, or did in fact cause, artificial prices in the marketplace. Nor did plaintiffs show that JPMorgan proximately caused fluctuations between COMEX’s silver and gold prices on June 26, 2007, and Aug. 14-15, 2008. Nor did plaintiffs allege facts supporting their claim that JPMorgan had monopoly power in the COMEX market or engaged in willful acquisition of such monopoly power.
