Girard Gibbs LLP Announces Class Action Lawsuit Filed Against JPMorgan Chase & Co....

Girard Gibbs LLP Announces Class Action Lawsuit Filed Against JPMorgan Chase & Co. (NYSE:JPM)

SAN FRANCISCO--(Business Wire)--
The law firm of Girard Gibbs LLP (http://www.girardgibbs.com)
announces that it has filed a class action lawsuit on behalf of
persons who purchased Auction Rate Securities from JPMorgan Chase &
Co. (NYSE:JPM) and J.P. Morgan Securities, Inc., between March 31,
2003 and February 13, 2008, inclusive (the "Class Period"), and who
continued to hold such securities as of February 13, 2008.

The class action, captioned Silverman v. JPMorgan Chase & Co., et
al., 08-cv-3177 (GEL), is pending in the United States District Court
for the Southern District of New York. The class action is brought
against JPMorgan Chase & Co. and its wholly-owned broker-dealer
subsidiary, J.P. Morgan Securities, Inc.

The Complaint alleges that JPMorgan violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 by deceiving investors
about the investment characteristics of auction rate securities and
the auction market in which these securities traded. Auction rate
securities are either municipal or corporate debt securities or
preferred stocks which pay interest at rates set at periodic
"auctions." Auction rate securities generally have long-term
maturities or no maturity dates.

The Complaint alleges that, pursuant to uniform sales materials
and top-down management directives, JPMorgan offered and sold auction
rate securities to the public as highly liquid cash-management
vehicles and as suitable alternatives to money market mutual funds.
According to the Complaint, holders of auction rate securities sold by
JPMorgan and other broker-dealers have been unable to liquidate their
positions in these securities following the decision on February 13,
2008 of all major broker-dealers including JPMorgan to "withdraw their
support" for the periodic auctions at which the interest rates paid on
auction rates securities are set.

The Complaint alleges that JPMorgan failed to disclose the
following material facts about the auction rate securities it sold to
the class: (1) the auction rate securities were not cash alternatives,
like money market funds, but were instead, complex, long-term
financial instruments with 30 year maturity dates, or longer; (2) the
auction rate securities were only liquid at the time of sale because
JPMorgan and other broker-dealers were artificially supporting and
manipulating the auction rate market to maintain the appearance of
liquidity and stability; (3) JPMorgan and other broker-dealers
routinely intervened in auctions for their own benefit, to set rates
and prevent all-hold auctions and failed auctions; and (4) JPMorgan
continued to market auction rate securities as liquid investments
after it had determined that it and other broker dealers were likely
to withdraw their support for the periodic auctions and that a
"freeze" of the market for auction rate securities would result.

If you purchased or otherwise acquired Auction Rate Securities
from JPMorgan between March 31, 2003 and February 13, 2008, and
continued to hold such securities as of February 13, 2008, you may, no
later than May 30, 2008 request that the Court appoint you as lead
plaintiff. A lead plaintiff is a representative party acting on behalf
of other class members in directing the litigation. To be appointed
lead plaintiff, the Court must decide that your claim is typical of
the claims of other class members, and that you will adequately
represent the class. Your ability to share in any recovery is not
affected by the decision whether or not to serve as a lead plaintiff.
You may retain Girard Gibbs LLP, or other attorneys, to serve as your
counsel in this action.

If you wish to discuss your rights as an investor in auction rate
securities through JPMorgan or any other brokerage, please contact
Girard Gibbs LLP toll-free at (866) 981-4800. A copy of the complaint
is available from the Court, or can be viewed on Girard Gibbs LLP's
website at: http://www.girardgibbs.com/auctionrate.html.

Girard Gibbs LLP is one of the nation's leading firms representing
individual and institutional investors in securities fraud class
actions and litigation to correct abusive corporate governance
practices, breaches of fiduciary duty and proxy violations. For more
information, please access the firm's web site,
www.girardgibbs.com/auctionrate.html. To discuss this class action
with us, please contact the following attorneys:

Daniel C. Girard (dcg@girardgibbs.com)

Jonathan K. Levine (jkl@girardgibbs.com)

Aaron M. Sheanin (ams@girardgibbs.com)

601 California Street, 14th Floor

San Francisco, CA 94108

Phone number: (866) 981-4800

Website: http://www.girardgibbs.com/auctionrate.html

Girard Gibbs LLP
Daniel C. Girard, 415-981-4800
Jonathan K. Levine, 415-981-4800
Aaron M. Sheanin, 415-981-4800

Copyright Business Wire 2008