gata.org / By Chris Powell / 3:20p ET Saturday, December 29, 2012
Dear Friend of GATA and Gold (and Silver):
A federal judge has dismissed the class-action silver market-rigging lawsuit against J.P. Morgan Chase & Co. that was brought a year ago in September, ruling that the complaint lacked the specifics and claims of bad intent necessary to be allowed to proceed to trial.
The dismissal was ordered a week ago by Judge Robert P. Patterson Jr. in U.S. District Court for the Southern District of New York. The judge gave the plaintiffs 30 days to show cause why they should be allowed to file a substitute complaint.
Judge Patterson’s decision is posted in PDF format at GATA’s Internet site here:
The judge begins on Page 19 to enumerate the deficiencies he found in the complaint.
Interestingly, the judge also writes on Page 19, “JPMorgan declines to challenge that it possessed the ability to influence market prices.” Of course silver market rigging whistleblower Ted Butler long has maintained that Morgan’s disproportionate position in the silver futures market is by itself highly manipulative.
A representative of one of the law firms for the plaintiffs in the case, Labaton Sucharow in New York, wrote to clients this week: “We are exploring next steps with the hope that there is some way to revive the case.”
The lawsuit’s complaint from September 2011 is posted at GATA’s Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.