JPMorgan Chase is aiming to recover millions of dollars from an insurance policy that protected the US bank against fraud after its botched $175mn acquisition of financial aid start-up Frank, according to people familiar with the matter.
The insurance payout would give JPMorgan some financial relief following a deal that chief executive Jamie Dimon has since described as a “huge mistake” and which raised questions about the bank’s due diligence.
JPMorgan earlier this year claimed that it was misled by Frank’s management in the run-up to its $175mn acquisition of the company in 2021, alleging company founder Charlie Javice told the bank her business had 4.25mn customers when in fact it had only 300,000.
Read the full story on the Financial Times here.