Clark Smith Villazor LLP Files Advancement Action to Enforce JPMorgan’s Mandatory Obligations to Cover Former Employee’s Defense Costs

October 3, 2025

On October 3, 2025, Clark Smith Villazor LLP and co-counsel Berger McDermott LLP filed a Complaint in the Delaware Court of Chancery on behalf of its client, Arif Ahmed, seeking enforcement of his mandatory advancement rights against JPMorgan Chase & Co. and J.P. Morgan Securities LLC.  The Complaint asserts that JPMorgan is obligated to advance defense costs under its own bylaws and a separate contractual arrangement that Mr. Ahmed entered into with a predecessor to J.P. Morgan Securities LLC. 

According to the Complaint, JPMorgan confirmed throughout 2024 and early 2025 that it would advance Mr. Ahmed’s legal fees in connection with certain legal proceedings that arose while he was employed as a Wealth Partner subject only to the standard undertaking to repay if indemnification for defense costs was ultimately unavailable.  Nonetheless, in May 2025, JPMorgan reversed course, terminated advancement, and demanded immediate repayment even though the underlying proceedings had not been resolved and there was no adjudication of the merits of any claims.  

The Complaint alleges that JPMorgan violated its own bylaws as well as its contractual promises to Mr. Ahmed, all of which mandated continued advancement for any legal proceeding brought by reason of Mr. Ahmed’s employment with JPMorgan.   The Complaint seeks an order compelling immediate restoration of advancement of legal fees and costs incurred in defense of any matter that arose while Mr. Ahmed was a JPMorgan employee as well as prejudgment interest and fees on fees associated with enforcing his advancement rights.  

The Delaware Court of Chancery ordered expedited briefing on Mr. Ahmed’s entitlement to advancement and, on December 5, 2025, held oral argument on the parties’ cross-motions for summary judgment. A copy of the Complaint can be found here.