JPMorgan, Morgan Stanley face shareholder suits over buyout advice

JPMorgan Chase and Morgan Stanley are facing shareholder lawsuits over their roles as advisers on multibillion-dollar buyouts, with plaintiffs alleging the banks helped steer sales to private equity firms at undervalued prices.

A revision to Delaware corporate law made it harder to sue executives and directors in insider deals but did not give banks the same protection. JPMorgan and Morgan Stanley have each faced two such suits, although one case against each bank has been dropped.

JPMorgan is seeking to dismiss a case alleging it helped private equity firm Hellman & Friedman sell its investment in Snap One Holdings to the detriment of public shareholders. Morgan Stanley faces a new lawsuit over the $1.5 billion buyout of Couchbase by Haveli Investments.

The banks have denied wrongdoing, saying they helped companies run fair processes, were not conflicted and disclosed business ties. Bloomberg reported that at least five cases against banks have been filed since Delaware changed its law in March 2025.

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