A lawsuit against RBS linked to Lehman-backed structured products has been withdrawn in Singapore, and the investors barred from launching further cases.
The collapse of Lehman Brothers in Sept 2008 sparked a wave of lawsuits against financial institutions in Singapore which had allegedly mis-sold the products.
Investors who bought into the Minibond series of products claimed the investments were sold as "safe and low-risk" despite concerns over the credit-worthiness of Lehman
RBS, Lehman and its Minibond subsidiary which originated the structured product were later sued by a group of five investors in Sept 2009, in an attempt to seek full restitution on the basis of mis-representation and improper sales procedures.
According to a Bloomberg report, the investors have not only withdrawn their claims against RBS but are also barred from filing similar lawsuits against the bank.
No reasons were given for the investors' decision to drop the case, according to a court filing.
Another group of 213 investors in Singapore who invested in a "High Notes 5" product sold by DBS Group Holdings have mounted an appeal against a separate ruling which dismissed their suit to recoup S$18m in losses related to Lehman's collapse.
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