J.P. Morgan Sued Over Enron Holdings

J.P. Morgan Chase & Co. was sued by shareholders who accuse the second-biggest U.S. bank of breaking securities laws by failing to disclose the amount of money it might lose because of loans made to Enron Corp.

The class-action suit, filed in U.S. District Court in Manhattan, says J.P. Morgan Chase was reckless when it issued a public statement Nov. 28 that didn’t fully disclose its risk and loss exposure to the Houston-based energy trader, which filed for Chapter 11 bankruptcy protection Dec. 2.