Jul 10 2009
DBS High Notes Lawsuit
A group of more than 200 DBS High Notes 5 investors have commenced legal action against DBS. The group of investors is understood to have lost about S$17 million and are suing for a total refund of their investment money.
Yesterday, a legal notice was served on DBS by legal firm Premier Law. The claim was based on the prospectus and pricing statement relating to the DBS High Notes 5.
A DBS spokesman said the bank remains confident that the case is without merit and will defend themselves.
This legal suit against DBS will no doubt attract a lot of interest as it is the first “class action suit” bought against a financial institutional as a result of the massive losses incurred from structured products linked to Lehman Brothers.
Strange but True. After news of the lawsuit came out, DBS shares actually went up while the other two big banks went down. Now isn’t it strange?
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I wonder is the HK minibond buyback also includes DBS High Notes?
If it is included, then DBS should compensate the sgp DBS high notes investors of the amount similar to HK investors. Else, it will be seen as a double standard.
Once the dust settled and if DBS close case by compensating, their shareprice will drop significantly. I felt that the saga has been dragging too long and those Banks and FIs should use the HK compensation model to close case and move on.
Regards,
kenneth
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It’s confirm. HK minibond investors get refund at least 60%.
http://www.businesstimes.com.sg/sub/latest/story/0,4574,342872,00.html?
I wonder whether they settled DBS high Notes or the below is only solely for minibond. So what’s Sgp position? My guess is nothing………..
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HK investors may get mini-bond refund
HONG KONG – A group of Hong Kong banks said on Wednesday they have agreed to partially refund thousands of investors who bought complex financial products at the centre of a mis-selling scandal.
The deal covers around 29,000 investors who were sold so-called mini-bonds backed by US investment bank Lehman Brothers, said the Securities and Futures Commission, the Hong Kong Monetary Authority and the banks in a joint statement.
The deal has been brokered between the two regulators and the banks. The refunds could cost the 16 institutions who agreed to the deal up to HK$6.3 billion (US$808 million).
The value of the products, which were sold as safe investments, collapsed when Lehman went bust last September.
Under the deal, investors will get at least 60 per cent of the amount they invested in the mini-bonds.
The scandal has rocked the financial centre of Hong Kong and seen a string of protests by disgruntled investors, many of whom were elderly and said they did not understand what they were being sold. — AFP
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Update from Singapore Law and detail on claim made by investors:
http://www.singaporelawwatch.sg/remweb/legal/ln2/rss/legalnews/63737.html?utm_source=rss%20subscription&utm_medium=rss
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lioninvestor Reply:
September 7th, 2009 at 10:59 am
Hi CB,
Thanks for posting. Yes, saw this in the news but I suppose resolution of the lawsuit is going to take some time.
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