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JPMorgan pay out on lawsuit

Wall Street bank JPMorgan Chase has agreed to pay $425 million to investors in order to settle a lawsuit after alleged market manipulation during the technology boom of the late 90s.

JPMorgan is accused, along with dozens of other banks, of cheating investors of hundreds of millions of dollars during the technology boom, by pushing investors to pay excessive commissions to get allocations of shares.

Joseph Evangelisti, spokesman for JPMorgan, confirmed that the bank had reached "an agreement in principle", but said that it continued to deny the charges against it.

He also said that despite the costs, the bank would experience "no adverse effect on [its] financial results."

The settlement, which is yet to be agreed to by judges, is the first to be made by one of the accused banks and could encourage others to make payments before legal costs become too high.

Others banks involved in the case include Credit Suisse, Morgan Stanley and Goldman Sachs, who are likely to be forced to make much larger settlements than JPMorgans, as they are accused of gaining more from the market manipulation.