Bank Sued For $2.8 Million Error

March 23, 2012 by staff 

Bank Sued For $2.8 Million Error, JPMorgan Chase & Co. (JPM) is being sued by a trader who says he accepted a contract from the investment bank because a typographical error made him believe he would be paid 10 times what was actually offered.

Kai Herbert, a Switzerland-based currency trader, is suing JPMorgan for about 580,000 pounds ($920,000), his lawyers said at a trial in London this week. The original contract said Herbert’s annual pay would be 24 million rand ($3.1 million). JPMorgan blamed the mistake on a typographical error and said the figure should have been 2.4 million rand, according to court documents.

“That must have been the moment your heart sank,” Judge Henry Globe said at the trial this week, referring to when Herbert discovered the mistake. Herbert resigned from UBS AG (UBSN) in June 2010 following the offer from JPMorgan to relocate to Johannesburg. Herbert didn’t report for work after discovering the discrepancy and JPMorgan rescinded the employment offer in December 2010.

He has been unemployed since, other than eight months at Credit Suisse Group AG (CSGN) where he was fired in a round of layoffs in November. Banks globally have cut about 196,000 jobs since the start of 2011, according to data compiled by Bloomberg.

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