J.P. Morgan Withheld Payment From Tech Client, Lawsuit Alleges

J.P. Morgan Chase & Co. allegedly withheld a $12 million payment to Good Technology Inc. last year, worsening a cash shortage that forced the mobile-security company into a sale brokered by the bank, according to newly public claims in a continuing legal dispute.

The new details allege that the bank, in its capacity as a customer of Good Technology, hastened the company’s demise, even while the bank was advising it on a sale.

The allegations were unsealed Friday as part of a continuing lawsuit in Delaware court. The plaintiffs, including Good Technology employees who owned shares, accused J.P. Morgan and the company’s venture capital backers of mismanagement and conflicts of interest that resulted in a $425 million sale to BlackBerry Ltd.

Read on.

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