Daiwa Securities Group Inc. said Friday that it has been ordered by a British court to pay roughly $152.8 million in damages over a money transfer by its subsidiary in England.
The Japanese brokerage and financial service group said that as a result of the order, issued Thursday, it may book a reserve for the damages for the business year ending March 31.
According to Daiwa Securities, its British subsidiary, Daiwa Capital Markets Europe Ltd., made a payment related to stock lending directly to the chairman of a client company, instead of to the entity itself, from June to July 2009 under instructions from the executive.
The client company, Singularis Holdings Ltd., filed a lawsuit in July 2014 claiming that the transfer was made under fraudulent instructions.
Daiwa Securities said it carried out the money transfer because there was no legitimate reason to reject instructions from the executive but the chancery division of Britain’s High Court of Justice judged in favor of the client company.
The Japanese securities house said it was disappointed that its claim had not been accepted. The company said in a statement that it “will review this judgment and will consider all options, including an appeal.”
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.