JPMorgan Chase (JPM) and Morgan Stanley (MS) are among the banks getting sued by shareholders over their roles in multibillion-dollar buyout deals after a recent corporate law overhaul failed to protect financial advisers from potential liability, Bloomberg reported Monday, citing lawsuits filed in the Delaware Chancery Court.
Shareholders have claimed that banks assisted in the sales of public companies to private equity firms they had business relationships with at prices that undervalued their shares, alleging that the banks knew they were helping directors breach their fiduciary duties, according to the report.
JPMorgan and Morgan Stanley each faced two such suits, though both managed to have one dismissed, the report added.
JPMorgan Chase and Morgan Stanley did not immediately respond to requests for comment by.
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