Düsseldorf, Germany- Investors have sued West LB for damages in the amount of 490 million dollars plus interest. The investors have submitted to the Supreme Court of New York action against the West LB.
According to the applicants , the bank is directed by two special purpose vehicles based on fraud and this is where the investors’ money was placed. This had put about 500 million dollars into investment vehicles.
“West LB rejects the charges . They were professional investors, ” said a West LB spokesman. “They were aware that they were buying risky securities. Therefore, the West LB filed a motion to dismiss the complaint.