Federal Court Judge Dismisses Claim That JP Morgan Chase Caused Director To Commit Suicide

Yesterday, Judge John F. Keenan of the United States District Court for the Southern District of New York dismissed a wrongful death claim brought against JP Morgan Chase alleging that it caused a Senior Managing Director age 66, on sick leave for severe depression, to take his own life. The Director had been out on sick leave for severe depression for over two years between 2014 and 2016. Shortly after the Director went out on leave, JP Morgan unilaterally terminated his securities licenses and cancelled most of his commissions. However, he was not officially terminated.The Director declined proposals that he retire advising he planned on returning to work.

In August 2016, the Director advised that he was medically cleared to return to work but JP Morgan told him he would not be permitted to return. Plaintiff's the theory of liability was that JP Morgan Chase knew as of August 2014 that their Director was suicidal and nevertheless pressured him to resign. Since the suicide did not occur until January 2017, the Court found that it was not "reasonably foreseeable that defendants actions would result in Lorig's suicide." Mullaugh v JP Morgan Chase, 2019 WL 935173

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