Campbell Family Trust v. JPMorgan Investment Management



Seven shareholders in JPMorgan funds filed a lawsuit in federal court on October 16, 2015. The plaintiffs' complaint alleges that JPMorgan is charging excessive advisory fees in five captive mutual funds, compared to what it charges to be a sub-advisor to unaffiliated funds. Specifically, the complaint states that JPMorgan charged approximately $84.3 million more to its own funds in the last fiscal year than to the funds it sub-advises.

 

The complaint also alleges that JPMorgan charges higher fees for administrative services than it charges to unaffiliated entities for the same or similar services. The complaint states that five JPMorgan funds paid more than $51 million in administrative fees over the last year, when unaffiliated mutual funds of the same size were only charged between $3.4 million and $11.4 million, amounts that, on average, were less than 20% of what was being charged to the JPMorgan captive funds.

 

This case has been consolidated with Goodman v. JPMorgan Investment Management.  On February 26, 2016, the Court denied JPMorgan's motion to dismiss. However, the Court did grant the motion to dismiss the sub-administrator to the funds in the case on standing grounds.

Seven shareholders in JPMorgan funds filed a lawsuit in federal court on October 16, 2015. The plaintiffs' complaint alleges that JPMorgan is charging excessive advisory fees in five captive mutual funds, compared to what it charges to be a sub-advisor to unaffiliated funds. Specifically, the complaint states that JPMorgan charged approximately $84.3 million more to its own funds in the last fiscal year than to the funds it sub-advises.

 

The complaint also alleges that JPMorgan charges higher fees for administrative services than it charges to unaffiliated entities for the same or similar services. The complaint states that five JPMorgan funds paid more than $51 million in administrative fees over the last year, when unaffiliated mutual funds of the same size were only charged between $3.4 million and $11.4 million, amounts that, on average, were less than 20% of what was being charged to the JPMorgan captive funds.

 

This case has been consolidated with Goodman v. JPMorgan Investment Management.  On February 26, 2016, the Court denied JPMorgan's motion to dismiss. However, the Court did grant the motion to dismiss the sub-administrator to the funds in the case on standing grounds.

Document Title: 
Court Denies Motion to Dismiss
Document Desc: 
On February 26, 2016, the Court denied the motion to dismiss the case. The Court did grant a motion to dismiss the sub-administrator in the case, involving the allegations of excessive administrative fees.
Document Title: 
Shareholders File Excessive Fee Lawsuit Against JPMorgan Investment Management
Document Desc: 
On October 16, 2015, shareholders in five JPMorgan funds filed a lawsuit in U.S. District Court for the Southern District of Ohio against JPMorgan for excessive advisory and administrative fees.