Japanese investors have sued Mitsubishi UFJ Financial Group¡¯s joint venture brokerage with Morgan Stanley, showing that the fallout from losses on Credit Suisse¡¯s riskiest debt continue to reverberate around the world.
The suit was filed Thursday to the Tokyo District Court on behalf of 66 plaintiffs, demanding ?5.2 billion ($36 million) in compensation from Mitsubishi UFJ Morgan Stanley Securities. They are seeking to recover losses from so-called Additional Tier 1 notes that were sold by the firm, according to the filing led by Yamazaki Marunouchi Law Office.
Bondholders lost everything when about $17 billion of these securities were wiped out during UBS Group¡¯s emergency takeover of Credit Suisse. Some reacted with anger when UBS said this month it won¡¯t need state support for its rescue deal after all. The debacle has sparked various lawsuits around the world, and the latest case in Japan hits its largest lender.
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