Bloomberg News reports that Nanzan School Corp. filed the lawsuits in the Tokyo District Court, the Nagoya-based company said in a statement on its website Thursday. It’s seeking 6.7 billion yen from UBS’s Japanese brokerage unit and 2.1 billion yen from Nomura Securities Co., arguing that the companies failed to explain risks of the transactions.
The school operator is among Japanese companies and universities that lost money from investing in structured products during the global financial crisis that triggered the bankruptcy of Lehman Brothers Holdings Inc. in 2008.
'The explanation of the risk was insufficient and in some cases absent,' Shigenori Okajima, an official at Nanzan’s finance department, said by phone Thursday. 'For instance, the brokerages neglected to fully explain how the yen’s appreciation would affect the products.'
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