A judge has ordered JPMorgan Chase & Co to pay $45 million to billionaire Leonard Blavatnik, finding the bank invested his money in risky mortgage-backed securities without his permission. Manhattan Supreme Court Justice Melvin Schweitzer (See Profile) ruled on Monday that JPMorgan, in its capacity as manager of an investment fund owned by Blavatnik, breached a contractual promise that it would invest no more than 20 percent of the fund's money in MBS. The billionaire claimed that as much as 60 percent was invested in MBS.
Schweitzer awarded Blavatnik $45 million plus interest in damages, which is about half of what Blavatnik sought. The judge dismissed Blavatnik's claims that JPMorgan's mismanagement constituted negligence or breach of fiduciary duty.
