DBS Bank is being sued by a client claiming fraudulent and negligent
misrepresentations that a US$1.5 million ($2 million) Lehman
Brothers-related investment was "sound".
Former DBS banker
Desmond Lim Hong Nian had said principal invested in the structured
product was safe, according to a Nov 30 lawsuit filed with the Singapore
High Court by Australian Mark Carpenter.
Mr Carpenter is
seeking to recover the US$1.17 million he lost when Lehman filed for
bankruptcy protection in 2008 and claiming an additional US$280,000 from
DBS and Mr Lim for losses incurred after the bank made five
unauthorised transactions in currency-linked investments, according to
court filings.
The bank had its ban on the sale of
structured notes lifted by the Monetary Authority of Singapore in
February after it improved the internal procedures of its advisory
services across all its investment products.
DBS was one
of 10 financial institutions banned from selling structured notes
following claims by investors that they were misled on products tied to
Lehman.
A DBS spokeswoman said the bank will defend the
lawsuit. Mr Lim is no longer employed by the bank, the spokeswoman
added, declining to elaborate.
Mr Carpenter's lawyer, Mr N Sreenivasan, could not be reached for comment at his office.
DBS denied in court filings telling Mr Carpenter that his
principal in the investments would be protected. Mr Carpenter indicated
he was prepared to take high risks and was an experienced investor who
made his own decisions, the bank said.
Mr Carpenter also
failed to inform the bank within seven days of receiving his investment
advice slips that there were erroneous transactions, DBS said.
Investors in Singapore bought $508 million of structured products
linked to Lehman, which lost most or all of their value when the lender
filed for the biggest bankruptcy in United States corporate history.
DBS last year reviewed 140 cases in Singapore where its customers
lost money on $103 million of Lehman-linked structured notes.
The Singapore lender has also been sued by 204 investors who
incurred $17 million in losses on securities linked to Lehman.
DBS in July agreed to repay HK$651 million ($110 million) to Hong
Kong clients it classified as having a low or medium investment risk
profile and who bought Lehman-linked notes.
while i hate Australians...............i hope this guy will win against DBS............
Suit against DBS dismissed
DBS Bank has scored a victory over 215 investors who mounted a collective action lawsuit against the bank in a bid to recover up to $18 million poured into a now worthless product, DBS High Notes 5.
The group had sued DBS Bank in July last year after they lost all their money invested in the complex structured product linked to failed United States investment bank Lehman Brothers.
-- ST
Originally posted by QX179R:Suit against DBS dismissed
DBS Bank has scored a victory over 215 investors who mounted a collective action lawsuit against the bank in a bid to recover up to $18 million poured into a now worthless product, DBS High Notes 5.
The group had sued DBS Bank in July last year after they lost all their money invested in the complex structured product linked to failed United States investment bank Lehman Brothers.
-- ST
not surprised DBS won............but surprised that PAP never let the people win............just to win votes !
if those 215 investors are quite old then over 1000 votes for opposition liao................good !