J.P. Morgan Chase and Lehman Brothers Holdings have been charged in a class-action lawsuit for helping hedge fund Canary Capital Partners engage in trading violations that harmed long-term shareholders. Until the lawsuit, both J.P. Morgan and Lehman had managed to stay above the far-reaching mutual fund scandal that has tainted more than a dozen financial service firms with accusations of improper trading activities. The lawsuit was filed in federal court in Baltimore.

The lawsuit combines hundreds of complaints filed after New York Attorney General Eliot Spitzer first revealed that Canary received permission from dozens of mutual funds to engage in improper, rapid-fire trading that reportedly stripped profits from long-term investors.

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