Credit Suisse’s AT1 write-down continues to steal the legal spotlight, this time with an investor suing Japanese online brokerage Monex.
Kojimachi Oodori Sogo Law Office filed a suit with the Tokyo District Court against Monex on behalf of a 62-year old investor seeking 22.5 million yen ($161,000) in compensation, according to «Bloomberg» report citing a copy of the complaint.
Monex is being sued for allegedly selling securities via its business partner Wealth Guardian without providing any explanation on special viability risks related to Credit Suisse’s AT1 bonds. Attorney Akiyoshi Motosugi said it was «very irresponsible to create such flawed materials and conduct sales through independent financial advisers».
The aftermath from Credit Suisse's wipeout of 16 billion francs ($19 billion) in AT1 bonds continues to be felt with various investors globally making efforts to seek recourse. In Japan, investors bought around 140 billion yen ($1 billion) of the debt with clients of Mitsubishi UFJ Financial Group and Morgan Stanley’s securities joint venture taking the biggest hit.
