Abu Dhabi Commercial Bank PJSC, the United Arab Emirates’ third-biggest bank by assets, sued Credit Suisse Group AG, Standard & Poor’s and others for allegedly providing misleading information on an investment product.
The lawsuit filed in New York alleged that Credit Suisse “failed to disclose conflicts of interest and other material information, and provided misleading information, when structuring, marketing and selling an investment, known as Farmington, to ADCB in 2007,” the bank said in an e-mailed statement today. The lender also alleged that Standard & Poor’s “provided inaccurate, investment-grade ratings to assets associated with the Farmington structure.”
Abu Dhabi Commercial made a 560 million-dirham ($153 million) provision in 2007 for losses from investments in the U.S. subprime mortgage market. The bank also sued Morgan Stanley & Co., Bank of New York Mellon Corp. and three securities ratings services for allegedly rating too highly a structured investment vehicle that collapsed in 2007.
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