A group of Hong Kong investors sued Lehman Brothers and HSBC in the US in their fight to recoup as much as $1.6 billion in losses after the collapse of the Wall Street firm left their bond holdings possibly worthless. Lawyers in the US said the plaintiffs are mostly retired people and retail investors who bought $2 billion worth of structured products that originated with Lehman and which HSBC marketed as low-risk ``minibonds.
They say Chinese investors, who have a high savings rate, are drawn to conservative investments. Calling the investments minibonds drew more interest but investors have since complained that was misleading. A unit of HSBC Holdings PLC sold the minibonds to the plaintiffs, many of whom did not realise they were exposed to risk of Lehmans failure. Hong Kong investors said the lawsuit, which was filed Thursday, represented an important milestone in their fight to recoup losses which they have been doing in the past six months.
Comments
Comments are closed.