Pennsylvania's Erie School District last week filed a lawsuit in U.S. federal court against JPMorgan, one of the bank's former brokers, and Investment Management Advisory Group Inc., alleging that collusion by the defendants cost the district more than $1 million on an interest-rate swap transaction.

The lawsuit represents added legal troubles for the investment bank, which already finds itself as one of the firms at the center of parallel civil and criminal investigations by the Justice Department and Securities Exchange Commission regarding alleged anticompetitive behavior in the municipal derivatives and investments market. A number of other issuers have also sued JPMorgan, along with other banks, brokers, investment advisers, and insurance companies, alleging similar wrongdoing.

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