J.P. Morgan to pay Ashley Furniture two million in settlement

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ARCADIA - An arbitration panel has awarded J.P. Morgan Securities to pay almost two-million-dollars to Ashley Furniture of Arcadia.

Ashley complained to the Financial Industry Regulatory Authority, after it got into a dispute over auction-rate securities that Morgan had sold to the Wisconsin furniture-maker. Ashley said Morgan never disclosed that the securities were not liquid, safe, short-term investments – and Morgan committed a possible conflict by never disclosing its own involvement in the auction-rate securities market. Ashley had sought almost $27-million, and the arbitration award was much smaller.

Ashley is the nation’s largest furniture retailer, and among the largest manufacturers of home furniture.

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