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|11 July 2009
Investors take Singapore’s DBS to court on losses
DBS Group Holdings Ltd, banned by Singapore from selling structured products, was sued in the city-state by 204 investors over losses on securities linked to failed Lehman Brothers Holdings Inc, reported Bloomberg News.
The clients want DBS’s High Notes 5, which are tied to Lehman Brothers, to be declared void and get their money back, Siraj Omar, a lawyer at Premier Law LLC, which represents the investors, said by phone today. The group incurred losses of about S$17 million ($12 million), the Straits Times reported.
The Monetary Authority of Singapore this week banned DBS and nine other financial institutions that sold products linked to Lehman from selling structured notes. The central bank was investigating claims by investors who say financial institutions misled them in the sale of the securities.
“DBS is confident that the case is without merit and we will defend it,” Karen Ngui, a Singapore-based spokeswoman at DBS, said by phone today, referring to the lawsuit.
More than 1,000 retail investors bought S$104 million of DBS High Notes 5 from DBS, according to the monetary authority. The total issue size of the Lehman-linked products in Singapore was S$508 million, of which S$373 million was sold to about 7,800 retail investors through nine distributors, the central bank said.
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