Chinese firm chairman sues C Suisse for negligence

Credit Suisse was sued by Li Tao, chairman of New York-listed China Green Agriculture, who claims the bank was negligent and made unauthorized trades on his behalf.

Bloomberg reports that the bank misled Li on the status of his account, failed to explain risks on some trades and didn’t inform him within a reasonable time of any shortfall, according to a lawsuit filed in Singapore High Court. The bank denied any wrongdoing.

Credit Suisse traded accumulators tied to a Hong Kong-listed company without his permission, Li claimed. When his account balance fell into the negative, the bank used $7.7m he had on deposit to cover the shortfall without his permission, Li said. He had intended to use the money for his immigration to New Zealand, the Chinese citizen said in court papers.

Credit Suisse had explained the risks to Li, without having any legal obligation to do so, the bank said in its defence papers filed this month. 

To access the complete Bloomberg article hit the link below:

Credit Suisse Sued by China Green Chief Over Alleged Negligence

China Auditors Barred for Six Months Over Blocking SEC Probes

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