Delaware Chancery Court Judge Kathaleen St. J. McCormick concluded Monday that JPMorgan was legally obligated to cover Javice’s legal bills, rejecting the bank’s argument that her alleged fraud fell outside the scope of the 2021 merger agreement. The ruling likely also covers Javice’s legal fees tied to criminal fraud charges brought by federal prosecutors over the disputed deal.
JPMorgan sued Javice and Olivier Amar, another Frank executive, for fraud in Delaware federal court in December, claiming they falsified records to show the site had more than four million customers when it actually had less than a tenth that number. JPMorgan has since shut down the Frank site.
Javice and Amar both turned around and sued JPMorgan for legal fees in Delaware Chancery Court, saying the deserved coverage under the bank’s policies since they became JPMorgan employees after the buyout. The bank’s attorneys countered the fraud allegations negated the institution’s indemnity obligations.
Source: JPMorgan Ordered to Pay Charlie Javice’s Legal Fees in Frank Fraud Case – Bloomberg
