The suit claims that by prioritizing their role as BlackBerry’s advisers when it was in the process of acquiring Good Technology, JPMorgan had not only a conflict of interest, it did not satisfy its advisory role to Good Technology which essentially led to a “fire sale” during its acquisition.
Former shareholders of a mobile software manufacturer have sued JPMorgan Chase & Co for a breach of fiduciary duty.
According to the lawsuit, JPMorgan was “self-interested” and “conflicted” in its dealings with Good Technology, which essentially led to the start-up selling itself to BlackBerry Ltd in 2015 for a “fire-sale” value of $425 million.
According to the lawsuit, JPMorgan was advising Good Technology and was BlackBerry’s adviser as well. The complaint noted that JPMorgan had prioritized its relationship with BlackBerry over its dealings with Good Technology.
The lawsuit has valued Good Technology at more than $1 billion.
Both JPMorgan and Blackberry were not immediately available for comments on this issue.
This lawsuit is part of a suit which Good Technology’s shareholders originally filed in October 2015.
The initial lawsuit has accused Good Technology’s directors and executives of conflict of interest and has made them as defendants.
The case is Good Technology Corporation Stockholder Litigation, Court of Chancery, State of Delaware C.A. No. 11580-VCL