Singapore high court assistant registrar Paul Chan has rejected Credit Suisse request to dismiss a lawsuit by one of its former private wealth client accusing the bank’s Singapore unit of failing to explain the risks of a complex investment product.
Former stockbroker Koh Kim Teck sued the unit for $26 million, claiming it gave him too little time to raise collateral in October 2008 after he suffered losses from "knock-out discount accumulators," derivatives that commit investors to buying securities over a certain period, according to Bloomberg.
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According to court papers seen by the publication Credit Suisse termed the lawsuit ‘frivolous’ because the Singapore resident is pursuing it in his personal capacity when it was his company, Smiling Sun Ltd., that had the banking relationship.
The court has ordered the Swiss bank to present a defense by 11 September 2014 unless it appeals.
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