[chadash]

A 9-figure acquisition sounds like a lot, but consider that this is less than 0.05% of JP Morgan's market cap. Their market cap is down $6 billion today, and it's not even a particularly notable day.

And it's not like that money is completely gone. JPM will sue and probably recover a very large chunk of it. Say that of the $175 million, they get back $150M, so they are out $25M. It's just not that much money to them. Sure, someone didn't do their job and will probably get fired over this, but Jamie Dimon and the executive suite don't really think about $25M losses.

[jjgoldman]

> A 9-figure acquisition sounds like a lot, but consider that this is less than 0.05% of JP Morgan's market cap.

It's far less about the percentage of JPMC's market cap, and more about the fact that a competent due diligence effort would cost less than $250k, which is insignificant against the cost of the acquisition.

[cldellow]

> JPM will sue and probably recover a very large chunk of it

Who are they going to sue? Javice's stake in the company was only worth $21M.

If the rest is held by shareholders who weren't involved in the running of the company, good luck getting it back from them.

[PeterisP]

It seems quite plausible that most of the money paid for the company was placed in escrow for some time, exactly to cover scenarios like this where the seller misrepresents something material about the company.

[chadash]

Fair point, although it was a private company with 8 investors, so it wouldn't be that crazy to file 8 lawsuits.