24 April, AtoZForex, Lagos – The ongoing battle between Deutsche Bank and billionaire investor Alexander Vik has taken a new turn. The Deutsche Bank Billionaire FX Investor lawsuit commenced after Mr. Vik’s company incurred huge losses in the Foreign exchange markets leading to a margin call. Deutsche bank then sued the investor for refusing to pay his debt to the bank. A U.K court ruled last month that Mr. Vik had not been properly served a suit, hence rendering the initial order void. The bank has now served Mr. Vik a new suit.
Deutsche Bank Billionaire FX Investor lawsuit Null and void?
The court rendered the initial lawsuit void because the judge deemed that Deutsche Bank delivered the court papers to Mr. Vik’s New York residence. Mr. Vik had argued that he couldn’t be served in the U.S. because he is not resident in the country. With Monaco as his main country of residence.
How it all began
Back in 2008, Norwegian entrepreneur Alexander Vik’s firm, Sebatian holdings incurred huge losses after an employee placed high risk bets in the currency markets. With Deutsche bank as the firm’s intermediary to the markets, the case stems from Deutsche’s claims that after Mr. Vik realized the magnitude of his losses, he proceeded to strip his firm — Sebastian Holdings fund — of all its assets. In the process, transferring $1 billion to himself as well as to other companies controlled by his immediate family. All in a bid to hide his money and avoid paying his debt to the bank. After realizing that he faced imminent margin calls from the bank.
Mr. Vik on the other hand argues that Deutsche bank violated several verbal contracts and wrongly made the margin calls. Also claiming that the bank should have prevented the trader from taking the risky bets which resulted in billion dollar losses.
After Deutsche Bank Billionaire FX Investor lawsuit , Mr. Vik then filled a counter claim of $8 billion against the bank. However, Mr Vik’s counterclaim was nullified in November 2013, while the court upheld claims that Sebastian Holdings failed to appropriately settle margin call. Mr Vik and his Sebatian holdings firm were then ordered to pay the bank a total of $300 million. The break down of which is of $243 million margin call debt, plus legal and others costs.
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