That revelation could mean big trouble for the bank, said Ronald Colombo, a professor at Hofstra University School of Law. While it is entirely possible that the misstatements by traders could be the work of a small, isolated group, it might be an indication of a larger problem, he said.
“This could be evidence of a culture that, for whatever reason, gives rise to this sort of behavior and this kind of misreporting,” Colombo said.
The restatement could also open JPMorgan up to a new front in litigation launched by shareholders.
“The company as a whole could be open to investor lawsuits, because the company lied to investors. The company put its name to filings that were inaccurate,” Colombo said.
Read the full article on law360.com.