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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...