A London appeals court refused to block Highland Capital Management LP’s Texas fraud lawsuit against Royal Bank of Scotland over a collapsed debt deal.
Bloomberg reports that the three justices last week also overturned a 2010 ruling that Highland owed RBS about $29m in light of dishonest evidence given by the Edinburgh-based lender.
That judgment was 'obtained by the fraud of RBS through the misstatement and concealment of facts', by one of its witnesses, former trader Sam Griffiths, appellate Judge Richard Aikens said in a written decision.
Highland claims it lost as much as $100 million when RBS improperly terminated a collateralized-debt obligation and seized the underlying loans in 2008, at the height of the credit crisis that followed the collapse of Lehman Brothers.
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