Tip Of The Iceberg?

Over the weekend, the Wall Street Journal had an article (via wsj.com – subscrip. req’d) on the IPO allocation cases. The article discusses the potential impact of the proposed JPMorgan settlement on the overall recovery for investors.

Quote of note: “After J.P. Morgan Chase & Co. agreed in recent days to pay $425 million to settle its part of the civil charges, estimates of the potential amounts that investors could get back have jumped and could reach several billions of dollars, plaintiffs’ lawyers say. That could make the case among the biggest brought against major Wall Street firms related to a series of scandals earlier this decade, including the collapse of companies such as Enron and WorldCom. Some plaintiffs’ lawyers say they now expect a higher recovery for investors partly because the amount that J.P. Morgan — the first of the banks to settle the case — agreed to pay is surprisingly large, given that the IPOs the company led accounted for less than 10% of the total damages calculated by the plaintiffs.”

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