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JPMorgan and Morgan Stanley face shareholder suits over buyout advisory roles

9/7/2026

A new wave of shareholder litigation is in focus for JPMorgan Chase (JPM) and Morgan Stanley (MS), after Delaware's March 2025 corporate-law overhaul extended liability protections to executives and directors in insider deals but left financial advisers exposed.

Bloomberg's court-records analysis counts at least five cases against banks since the changes passed, with law firm Block & Leviton bringing four of them.

The next filings to track are JPMorgan's dismissal motion in the Snap One Holdings case and Morgan Stanley's new complaint over the $1.5 billion Couchbase buyout.

The suits in play The legal theory runs through Delaware Chancery Court: even if directors are now shielded, claims against banks can proceed when a breach of fiduciary duty is established.

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