An important decision on the class action for the Pinnacle Notes in the USA will be decided soon - the hearing will start on 28 September.
By GRACE LEONG (Business Times)
A lawsuit involving allegations that Morgan Stanley & Co Inc sold rigged Pinnacle Notes as 'safe, conservative' products to a group of Singaporean investors including Singapore's oldest credit cooperative, costing them US$154.7 million in investment losses, is making its way through federal court in Manhattan.
A hearing is scheduled for Sept 28 in which the US District Court for the Southern District of New York will decide whether the case can proceed in the US or whether it should be dismissed and heard in Singapore, The Business Times has learned.
If approved, the Singapore investors will seek class-action status.
NOTE:
Under a class action (in the USA), any compensation received will be shared by all investors in the class, including the investors who were not involved in lodging the original complaint. There is no provision for a class action suit in Singapore.
By GRACE LEONG (Business Times)
A lawsuit involving allegations that Morgan Stanley & Co Inc sold rigged Pinnacle Notes as 'safe, conservative' products to a group of Singaporean investors including Singapore's oldest credit cooperative, costing them US$154.7 million in investment losses, is making its way through federal court in Manhattan.
A hearing is scheduled for Sept 28 in which the US District Court for the Southern District of New York will decide whether the case can proceed in the US or whether it should be dismissed and heard in Singapore, The Business Times has learned.
If approved, the Singapore investors will seek class-action status.
NOTE:
Under a class action (in the USA), any compensation received will be shared by all investors in the class, including the investors who were not involved in lodging the original complaint. There is no provision for a class action suit in Singapore.
But according to the Pinnacle Notes prospectus, these notes carry considerable risk, so how can they use the argument that the notes were marketed as safe conservative products. I think many Pinnacle investors did not read the prospectus.
ReplyDelete@ Sureesh
ReplyDeleteIt would seem a lot of people did not read the prospectus;
investors;
financial advisors;
bankers;
financial regulators
What to do?
It's happened.
Let's move on.
It cannot be helped.
It's a once in 50 year event.
If you read every fine prints, you should not have a bank account, credit cards, sign a S & P to purchase your house or flat, board a MRT or bus, install microsoft softwares etc etc...
ReplyDeleteThe products retailed by banks must be 99% safe no matter what the prospectus said. This was the trust people place on banks, besides the RM of the banks told people these products were as safe as FDs. I am the victim of DBS HN5
I know but for many people they lost a lot of money some even almost their live savings. They can't just move on they need the money. But another question to ask is were the prospectus available in the first place or were they just printed after the notes were sold. Did any of the investors read the prospectus at the time they signed the documents.
ReplyDeleteNo, investors' case must be heard in US. Proceed case in Singapore Court is as good as gone case.
ReplyDeleteThe Judiaciary here has to protect MAS image, the fault lies with this Authority, allowing such products to be sold to the people.
I fear that the courts are protecting the banks in the USA too. The bankers there give money to politicians to pay the elections campaign. The politicians appoint the judges. So they judges will judge in favour of the banks. BTW has there been any verdict on this. The hearing was on 28 Sept right
ReplyDeleteThe American lawyers follow US system, no win no charge for Class Action. There is nothing to lose, but at least the chance to get injustice addressed is far better than in Politically Elite Singapore.
ReplyDeleteCorruption is universal, happens everywhere.