Breaking: Appeals Court Overturns Dismissal in JP Morgan Silver Rigging Case

Friday, February 3, 2017
By Paul Martin

SilverDoctors.com
February 3, 2017

This may be the biggest event in the silver market in decades. Why?
Next comes the discovery and fact finding…

Submitted by Vincent Lanci:

US Appeals Court overturns Dismissal in Silver Rigging Case against JPMorgan
The Appeals court rejected Judge Engelmeyer’s claim that the plaintiffs did not prove JPMorgan made “uneconomic bids” in the silver forward’s markets.
New Discovery May Win the Case for against JPMorgan

Summary

The New York 2nd U.S. Circuit Court of Appeals ruled yesterday that District Court Judge Engelmayer was in error when he dismissed the Silver price rigging lawsuits against JP Morgan. The appellate court felt that Engelmayer’s dismissal reasons amounted to “impermissible fact finding” and placed too high of a bar in concluding that plaintiffs had not adequately plead their case.

This reversal of the June, 2016 dismissal means the case will go back to the district court for further litigation. This also means the plaintiffs will ask for and receive more discovery. This can win the case for them.

The Lawsuit Was Dismissed in June,2016

JPMorgan Chase & Co had won the dismissal of three private antitrust lawsuits, including from hedge fund manager Daniel Shak, accusing the largest U.S. bank of rigging a market for silver futures contracts traded on COMEX.The lawsuits accused JPMorgan of having in late 2010 and early 2011 placed artificial bids onto the trading floor, harangued employees at metals market COMEX to obtain prices it wanted, and made misrepresentations to a committee that set settlement prices.

Our report June 30, 2016 JPM Silver Decision Flawed

Why it Was Dismissed in June

U.S. District Judge Paul Engelmayer in Manhattan, however, said the plaintiffs, who also included traders Mark Grumet and Thomas Wacker, did not show that JPMorgan made “uneconomic” bids, or intended to rig the market at counterparties’ expense.

He also questioned the plaintiffs’ use of Silver Indicative Forward Mid Rates (“SIFO”) as a benchmark for determining proper levels for the spreads in their lawsuits.

The Rest…HERE

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