New Castle News

August 24, 2012

Board approves settlement with JP Morgan Chase

Debbie Wachter
New Castle News

NEW CASTLE — The New Castle Area School Board at a special meeting this week approved a settlement with JP Morgan Chase.

The agreement is part of a class-action investment lawsuit. As a result of the settlement, the district will receive $85,000 for its general fund, according to district business manager Joe Ambrosini.

The district had a municipal bond derivative with JP Morgan Chase that was impacted by the banking firm’s relevant conduct of engaging in anticompetitive conduct and/or unfair trade practices relating to municipal bond derivatives between Jan. 1, 1998, through Dec. 31, 2006, Ambrosini said. JP Morgan Chase was cited in 25 different states.

The district Tuesday approved the settlement agreement as a named party with JP Morgan Chase. The $85,000 is a prorated amount based on the amount of investment of its bond issues, Ambrosini said.

The board, following a five-minute executive session for personnel reasons before its meeting, also voted to accept the resignation of S. Benjamin Easler of Butler, who was hired last week as music teacher at the John F. Kennedy Primary Center and the junior/senior high schools.

Easler declined the position to accept another job offer.

The board hired Leah Parady, who was next in line from applicants for the position.