A Japanese client sued Bank of America Corp.'s Merrill Lynch & Co. in Hong Kong for alleged reckless misrepresentation in selling him warrants that resulted in losses of ¥1.14 billion ($13 million).
Kozo Sugiura, who sued Merrill and its former private banker, Takenori Suzuki, for the losses, said he wasn't informed that the issuers and guarantors of his investments were Merrill-related companies and that they weren't principal-protected as instructed.
The investment documents were in English and a request by Sugiura and his assistant for copies in Japanese was turned down, according to a lawsuit filed in Hong Kong's High Court Nov. 10.
Sugiura is seeking to be repaid for his losses as well as damages, costs and other unspecified relief.
BOA Merrill Lynch spokesman Robert Stewart declined comment on the case, as did Rentaro Muto, Sugiura's lawyer.
Other Asian clients have been suing their private banks this year, with Citigroup Inc. settling a lawsuit with a Singapore client in October and a former Goldman Sachs Group Inc. banker banned from the industry in Hong Kong in July for making unauthorized trades for a client. UBS AG was sued that month by a client over the sale of structured products.