The Daily Telegraph reports that Aberdeen Asset Management could now be sued by for up to £100m by Real Estate Opportunities (REO) trust, an investment trust the firm manages, as the trust's income portfolio has fallen dramatically in value from £333m in June 2001 to its present value of around £49m.
It is believed that the trust's board has consulted top law firm Slaughter & May who will look at Aberdeen's management and establish whether the trust has a case.
The fund manager itself is deep in crisis. The firm is at the centre of the controversy surrounding split capital trusts and its own shares have fallen over 90% this year.
REO has confirmed that it is reviewing the management of its trust and is thought to have withheld payment of approximately £7m in fees due to Aberdeen until after the review has been completed.