Highland 'Whistleblower' Drops Lawsuit Against JPMorgan

Mar 14 2011 | 1:00pm ET

JPMorgan Chase has settled a lawsuit filed by an employee that accused hedge fund Highland Capital Management of "highly questionable accounting and management practices."

Kevin Dillon, a client processing specialist at JPMorgan's Greenwich, Conn., office, withdrew his July 2010 lawsuit after reaching an out-of-court resolution. The settlement, terms of which were not disclosed, came as JPMorgan sought to have the lawsuit thrown out, claiming that Dillon was not punished by the firm for claiming that Highland was "artificially manipulating" the value of some of its assets, including those held by a hedge fund that collapsed three years ago.

In his lawsuit, Dillon claimed that JPMorgan tried to force him out of his job and that a supervisor, who was not identified, "described to him the violent acts he would commit if anybody crossed him or his family."

The same supervisor told Dillon that JPMorgan "was aware of Highland's improper practices and that nothing would be done to remedy the issue."

Highland has denied any wrongdoing, calling itself a "pawn in a lawsuit by a disgruntled JPMorgan employee against JPMorgan."


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of