Zelle vs JPMorgan Case Tossed: Court Dismisses Shareholder Lawsuit

Zelle vs JPMorgan Case Tossed

In a major decision, a Delaware Chancery Court judge dismissed a shareholder lawsuit against JPMorgan Chase & Co., determining that the bank’s board adequately addressed issues surrounding fraud on the payment platform Zelle. The ruling handed down on Tuesday found no evidence of failure on the part of the bank to protect customers or comply with federal regulations.

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Zelle vs JPMorgan Case Tossed : Chancellor Rules Against Plaintiff Claims

In her 14-page opinion, Chancellor Kathaleen St. J. McCormick concluded that the complaint from IMG Holding LLC failed to demonstrate JPMorgan’s negligence in protecting its customers or violations of the Electronic Fund Transfer Act and Regulation E. The judge cited that media reports highlighted in the complaint did not indicate any delay or lack of compliance with federal regulations.

Legal Battles and Arguments

IMG Holding LLC initially filed the lawsuit in May, accusing JPMorgan directors of breaching their fiduciary duties by ignoring warnings from the U.S. Senate and media reports about hackers exploiting Zelle to steal funds from customer accounts. However, the court found that the bank thoroughly investigated and addressed the claims, contrary to the plaintiff’s accusations.