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JPMorgan Chase Loses |Bid to Block Class Action

(CN) - A federal judge in New York rejected JPMorgan Chase's assertion that a former employee lacked standing to file a class-action suit against the bank.

Frank Bilello alleged that Chase's retirement plan had committed numerous violations of the Employee Retirement Income Security Act (ERISA).

Chase argued that Bilello did not have standing to bring the suit because he had recently retired and received a lump-sum payout of his retirement benefits. The district court ruled on Jan. 6 that Bilello still qualified as a "participant."

Chase moved to certify an immediate appeal on Jan. 21, but U.S. District Judge Cote denied the motion. Cote ruled that the defendants have found only one previous case that seemed to differ with the Jan. 6 opinion.

However, Cote decided that the 2007 opinion, In Re: JPMorgan Chase Cash Balance Litigation, "did not analyze the question here in detail, and relied on cases that are factually distinguishable on further analysis."

In denying Chase's motion to certify the interlocutory appeal, Cote allowed Bilello to move forward with his class action lawsuit.

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