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Credit Suisse fends off $12m structured product mis-selling claim
by Jun Merrett on Feb 17, 2012 at 11:24
Credit Suisse has fended off a legal challenge over its advice to invest $12 million in a Lehman Brothers structured product.
Charalambos Ventouris, owner of investment company Camerata first took Credit Suisse to court in March 2011, alleging its advice to invest in the product was grossly negligent.
Ventouris’s complaint related to advice received from Credit Suisse relationship manager Petros Siakotos-Konstantinidis to invest in a five year autoredemption note in US dollars issued by Lehman Brothers in 2007.
Ventouris claimed he was not made aware that Lehman Brothers was the issuer and when it filed for bankrupty in 2008, the entire value or the majority of the note's value was lost.
He alleged that if Camerata had been properly advised about the creditworthiness of the issuer it would have liquidated the note before the collapse of Lehman Brothers.
The Honourable Mr Justice Flaux ruled in favour of Credit Suisse. He said it was not made obvious to him that Ventouris was strongly adverse to risk, making the product unsuitable, nor did he accept that had Ventouris received the right advice Camerata would not have entered into the transaction.
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by Brian Cantwell on May 20, 2013 at 15:02