Credit Suisse faces $49m damages bill in Japan over sale of Greensill-linked bonds - reports
The plaintiffs allege that the bank misrepresented the products when it sold the securities.
Today (7 July), the Yamazaki Marunouchi Law Office filed a lawsuit against Credit Suisse Securities (Japan), the bank's Japanese brokerage arm, with the Tokyo District Court on behalf of a Japanese company and its founder.
According to a copy of the complaint obtained by Bloomberg, the plaintiffs alleged the bank misrepresented the products when it sold the securities, the returns of which were linked to a supply chain finance fund that eventually failed.
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Taiju Yamazaki, an attorney‐at‐law at Yamazaki Marunouchi Law Office, told Bloomberg there were problems «both in the ways Credit Suisse Group operated its funds and the ways its securities unit explained about the products at the time of sales», adding that he would like to clarify those points in court.
The plaintiffs purchased four different types of bonds, the returns of which were based on the success of the Credit Suisse Nova (Lux) Supply Chain Finance High Income fund, according to the complaint, which included a leverage component.
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The complaint stated that neither Credit Suisse's product manuals nor its salesperson informed the plaintiffs that the fund was investing in securities guaranteed by both account receivables, which are typically based on invoices, and so-called future receivables.
Future receivables are much riskier investments since they are guaranteed on future sales that have not yet taken place.
According to the complaint, a limit-loss clause included into the bonds did not perform as Credit
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