According to Reuters, Hidalgo Mining, a Florida-based silver miner, has filed a lawsuit against JPMorgan, accusing it of manipulating the silver market.
Hidalgo Mining demanded that JPMorgan would compensate for losses incurred due to a sharp decline in silver prices. The silver miner is sure that the bank's analysts are to blame for the fall in silver prices. The company had to close a mine in Mexico following a nosedive in silver prices triggered by JPMorgan analysts’ comments.
The complaint said that Hidalgo Mining Corp raised $10.35 million from investors to finance a silver mine in Mexico. In 2012, silver was worth $31 per ounce. In 2014, its price totaled $19 per ounce. Currently, the metal is trading at $22-$23 per ounce.
Hidalgo Mining also provided as evidence information from an investigation by US regulators. The watchdog found that JPMorgan analysts sent fake buy and sell orders into metals and Treasuries markets to manipulate prices to their advantage between 2008 and 2016.
Last year, JPMorgan paid more than $920 million to settle the investigation. From September 27 to October 2, the bank paid $15.7 million to settle a class action lawsuit filed by investors. Market participants said that they had suffered serious losses due to JPMorgan's manipulations.
