Sep 21, 2010
Court dismissed US$700k claim
By Jonathan Kwok
FOUR investors who claimed Standard Chartered bank misled them into making an investment that shed value during the financial crisis had their US$700,000 (S$932,098) claim dismissed by the High Court on Tuesday. Justice Tay Yong Kwang said the plaintiffs had tried to 'gain an unfair tactical advantage' by not fully disclosed some documents showing previous investments. This 'hide and seek strategy', as he dubbed it, raised the risk that a trial might not be fair.
Mr Lee Chang-Rung, his brother, sister and brother-in-law had claimed in March last year that a structured product they had bought was misrepresented as having a guaranteed return of the principal plus a higher interest. They bought the product - called the '10Y NC3m Callable Libor Range Accrual Note' - in March 2008 from American Express, which was subsequently acquired by StanChart.
After the note plunged in value amid the global financial crisis, the four investors sought to claim the initial investment amount of US$700,000 from StanChart. They added they were conservative investors who typically invested in fixed deposits. But the bank disputed the claims, saying the product was not portrayed as being principle-protected.
Read the full report in Wednesday's edition of The Straits Times.
