Deutsche Bank Wins Ruling Overturning $49 Million Award
By Andrea Tan - Sep 19, 2013 5:41 AM ET
Deutsche Bank AG (DBK) won an appeal overturning a Singapore ruling ordering it to pay former client Chang Tse Wen $49 million for negligence in advising him on his investments.
Singapore Chief Justice Sundaresh Menon, on behalf of the city state’s top court, also wrote in a judgment handed down today that the bank can recover $1.79 million it had originally sued Chang for in 2009.
The logo for Deutsche Bank AG is seen on the company’s headquarters in Frankfurt. Photographer: Krisztian Bocsi/Bloomberg
Chang, a Taiwanese scientist who invented the Xolair asthma drug, had won the lower court case last year after counter suing Deutsche Bank over his losses on bets on companies like Citigroup Inc. The bank didn’t have a duty in advising him on managing his portfolio, the court said in today’s ruling.
“DB was dealing with a customer who had considerable means and an evident understanding of what he was doing and why,” the three-judge panel said. The bank didn’t make misrepresentations to Chang, it said.
Chang had said he “entrusted” the bank with part of the $118 million he made from selling his company, Tanox Inc., to Genentech Inc. in 2007.
The scientist was a “sophisticated man” who ignored the advice of his banker to diversify his investments, Deutsche Bank’s lawyer, Ang Cheng Hock, had argued.
Chang’s lawyer Muralidharan Pillai declined to comment.
“Deutsche Bank is pleased with the judgment and that this matter is now resolved,” said Michael West, a Hong Kong-based spokesman at the German lender.
The appeal case is Deutsche Bank AG v Chang Tse Wen, CA164/2012. Singapore Court of Appeal.
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