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October 24, 2011

A federal judge approved Oct. 11 a $42 million settlement between JPMorgan Chase & Co. and a class of approximately 3,800 loan processors regarding overtime pay claims under the Fair Labor Standards Act and state law.

Judge David Larimer of the U.S. District Court for the Western District of New York found that the proposed settlement was procedurally and substantially fair. He pointed out that only a small percentage of the individuals who received notice of the settlement opted out, and he rejected the arguments of three objecting class members. The class covers employees who were treated as exempt from overtime at any point during the class period, which ranges from 1996 to 2011, depending on the state in which class members reside.

JPMorgan Chase denied any liability or wrongdoing pursuant to the settlement, and the parties have released all federal and state law wage-and-hour claims by class members (Davis v. J.P. Morgan Chase & Co., W.D.N.Y., No. 01-6492, final approval of settlement 10/11/11).

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