NEW YORK, July 30, 2009 (GLOBE NEWSWIRE) -- A class action complaint filed by Scott+Scott LLP, alleging a registration statement and prospectus supplements issued to investors who purchased or otherwise acquired certain Mortgage Pass-Though Certificates ("Certificates") issued by J.P. Morgan Chase & Co. ("J.P. Morgan" or the "Company") (NYSE:JPM) through its issuing trusts were false and misleading, was removed from state court and is now pending in the U.S. District Court for the Southern District of New York. The Defendants include J.P. Morgan, certain of its subsidiaries and affiliates, the directors at J.P. who signed the Registration Statement and the rating agencies that facilitated the sale of the Certificates. This is a securities class action on behalf of all persons who acquired the Certificates of JP Morgan Issuing Trusts (defined, below) pursuant and/or traceable to the J.P. Morgan Acceptance Corporation I ("J.P. Morgan Acceptance") Registration Statement No. 333-141607 and accompanying Prospectus (collectively, the "Registration Statements") and Prospectus Supplements, for violations of the Securities Act of 1933.
The J.P. Morgan Issuing Trusts at issue in this action include:
* JP Morgan Mortgage Trust 2007-S2 * JP Morgan Mortgage Trust 2007-S3 * JP Morgan Mortgage Trust 2007-A3 * JP Morgan Mortgage Trust 2007-A4 * JP Morgan Alternative Loan Trust 2007-S1 * JP Morgan Alternative Loan Trust 2007-A2 * JP Morgan Mortgage Acquisition Trust 2007-CH4 * JP Morgan Mortgage Acquisition Trust 2007-CH5 * JP Morgan Mortgage Trust 2007-A5 * JP Morgan Mortgage Trust 2007-A6 * JP Morgan Mortgage Acquisition Trust 2007-CH3 * JP Morgan Mortgage Acquisition Trust 2007-CH6
If you purchased Certificates from one or more of these J.P. Morgan Issuing Trusts, pursuant and/or traceable to the Registration Statement, and wish to serve as a lead plaintiff in the action, you must move the Court no later than September 28, 2009, sixty (60) days from today. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
The complaint alleges that on March 27, 2007, J.P. Morgan and the other Defendants caused the Registration statements to be filed with the Securities and Exchange Commission ("SEC") in connection with and for the purpose of issuing hundreds of millions of dollars of Certificates through J.P. Morgan Issuing Trusts listed above. The J.P. Morgan Issuing Trusts issued the Certificates pursuant to the Registration Statements, which explained the structure of the Issuing Trusts and provided an overview of the Certificates. The Certificates were then sold to investors by underwriters pursuant to a series of prospectus supplements that were also filed with the SEC and incorporated by reference into the Registration Statements ("Prospectus Supplements"). Each Prospectus Supplement included a detailed description of the particular J.P. Morgan Issuing Trust and the Certificates it would issue. The Registration Statements further represented that the mortgages underlying the Certificates were investment-grade and were subject to specific loan underwriting and appraisal standards were based on and met such standards.
The Certificates entitled investors to receive monthly distributions of interest and principal on cash flows paid by the borrowers on the mortgages held by the J.P. Morgan Issuing Trusts. As the underlying mortgage borrowers in each issuance paid their mortgages, distributions were to be made to the investors of the particular Certificate as disclosed in the Prospectus Supplement disseminated with respect to that Certificate. If the underlying borrowers did not pay their mortgages, losses passed to investors based on the seniority of their Certificates. Consequently, the investment quality of the Certificates was inextricably connected to the quality of the mortgage loan pools held by each J.P. Morgan Issuing Trust.
However, as the complaint alleges, J.P. Morgan, and certain of its entities, failed to disclose in the Registration Statements that the loan originators that originated the mortgages to borrowers had ignored and/or never intended to follow the stated underwriting and appraisal standards and guidelines, and that loan purchasing guidelines were ignored. The underlying mortgages were also loans on properties for which the collateral appraisals materially overstated the value of the underlying properties. The Certificates that were sold to investors as investment-grade instruments were later revealed to be below investment-grade instruments. Additionally, as underlying mortgage borrowers became delinquent, defaulted and suffered foreclosures, the purportedly investment-grade Certificates were downgraded, cash flows were reduced and the Certificates were significantly reduced in value. The complaint further alleges that as a direct and proximate result of defendants' false and materially misleading statements and material omissions, investors suffered damages when the truth about the risk profile and value of the Certificates became known and the price dropped.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.