LONDON - JPMorgan (NYSE:JPM) Emerging Europe, Middle East & Africa Securities PLC (JEMA) is embroiled in ongoing legal battles with Russia's VTB Bank, as confirmed by the company's latest announcement. VTB Bank has sought to recover a total of $595.3 million in two separate lawsuits against JEMA and eight J.P. Morgan legal entities over funds held in New York.
The primary case involves a claim for $439.5 million, for which a Russian court ruled against J.P. Morgan on October 16, 2024. An appeal by J.P. Morgan has been scheduled for February 26, 2025, delaying any potential asset seizure until after the hearing.
In addition to this, preliminary hearings for two other lawsuits filed by VTB Bank in Russia, claiming $81.3 million and $74.5 million, have been postponed to January 15, 2025, and December 18, 2024, respectively.
Eric Sanderson, Chairman of JEMA, emphasized the uncertainty surrounding the company's Russian assets, given the unprecedented legal circumstances. He also highlighted potential implications for the insolvency of JPMorgan Bank International (JPMBI) and its ability to provide services for Russian securities and RUB cash holdings. The outcome of these claims or their enforcement could result in Force Majeure or Country Risk events, as defined in client contracts with J.P. Morgan.
The ongoing legal issues have created significant uncertainty for JEMA and its clients, with the company promising to provide updates following the court's decisions. This news is based on a press release statement and details are available on the London Stock Exchange (LON:LSEG) website.
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