Retirement Fund seeks class-action status
The AFTRA Retirement Fund has filed a federal lawsuit against JPMorgan Chase Bank over losses in millions of dollars that the plan sustained through the Sigma Finance hedge fund.The pension fund filed the suit, which seeks class-action status, in U.S. District Court in New York on Jan. 23. The action alleges that JPMorgan Chase lost a “substantial portion” in cash collateral in medium-term notes issued by Sigma Finance Inc., a structured investment vehicle sponsored by Sigma Finance Corp. It said creditors seized over $25 billion of Sigma’s $27 billion in assets in September and October, leaving about $1.9 billion as security for about $6.2 billion of outstanding medium-term notes. Pension fund lawyer Darren Check, a partner with Barroway Topaz Kessler Meltzer & Check, told Daily Variety, “We feel that the fund has been wronged by the bank. The pension fund, which has assets of $1.5 billion, covers members of the American Federation of Television & Radio Artists. JPMorgan Chase did not respond to a request for comment.