JP Morgan has been
ordered to pay Russian billionaire Leonard Blavatnik $50m after losing a claim
for damages.
Blavatnik brought
the claim against the investment bank after suffering losses following the
collapse of the US subprime mortgage market.
New York judge
Melvin Schweitzer ruled that JP Morgan breached its contract with Blavatnik's
investment fund.
But he rejected a
claim for negligence because at the time the investments were considered
"reasonable".
Blavatnik, one of
the world's richest men, sued the largest US bank in 2009 to recover more than
$100m.
According to
Blavatnik, JP Morgan Investment Management promised that it would invest his
money conservatively after opening the account in 2006.
Instead, the bank
allegedly breached a 20% limit set for mortgage-backed securities by
misclassifying securities backed by a pool of subprime loans.
The judge's
ruling, released late on Monday, said JP Morgan should pay $42.5m damages, plus
interest at 5% a year from 2008.
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