JPMorgan Harassment Lawsuit Dismissed in State Court; Federal Refiling Planned

A New York state judge has dismissed a lawsuit filed by a former banker against JPMorgan Chase & Co. (NYSE: JPM) and a one-time colleague that contained graphic allegations of sexual coercion. The case is expected to be refiled in federal court, allowing the plaintiff to add new claims under federal law.

The Dismissal

On Thursday, Justice Dakota Ramseur of the New York State court in Manhattan granted the dismissal, which had been requested by the plaintiff, former vice president Chirayu Rana. According to the court order, the dismissal is conditioned on Rana paying a portion of the legal fees for JPMorgan and his former colleague, Lorna Hajdini.

This procedural move allows Rana's new legal team to pursue the case in a different jurisdiction. His lawyers have stated their intention to add claims of discrimination and retaliation under federal civil rights laws, as well as claims under the federal Family and Medical Leave Act, to the existing state-level allegations.

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Allegations and Denials

The original lawsuit, filed on April 27, accused Hajdini of using her seniority to force Rana into non-consensual sexual activity over several months. The complaint alleged that Hajdini used racially derogatory language and threatened to sabotage Rana's career if he did not comply with her demands.

JPMorgan has stated that it believes Rana's allegations are meritless. In a separate legal action, Hajdini filed a defamation countersuit against Rana, which is not affected by this dismissal and will continue in state court. She has denied being Rana's supervisor and asserted that his claims are "malicious lies" that have "wreaked havoc" on her life.