Following court order, the claims by James Giddens, a trustee of MF’s broker-dealer unit MF Global, which was bankrupt in 2011, has been resolved, as reported by Reuters.
MF Global filed a law suit against the US-based investment bank, when it collapsed due to higher exposure to $6.3bn in sovereign debt.
Martin Glenn was quoted by the news agency as saying, "I find the proposal fair, reasonable and in the best interests of the class."
The agreement will enable the investors to get back their 100% capital, which was seized when MF Global went bankrupt.
Based on the terms of the settlement agreement, JPMorgan will reimburse $100m to former customers, while it will pay back over $29m in brokerage funds.
Further the bank has also agreed to release $417m in claims, which it has returned to Giddens.
Earlier this year, Giddens inked an agreement with MF Global’s UK unit, which is likely to provide $500m to $600m in settlement amount.
Giddens’ lead attorney James Kobak commented, "The overall settlement unlocks over $1 billion for customers and other creditors."
