The Spanish Supreme Court has obliged a bank to refund the sum of 279,000 euros to a client who was sold bonds in a Lehman Brothers product without telling the investor of the risks associated with the investment. The judge also overturns the judgment because the client did not know where his money would be invested. A client who invests in a financial product sold by the Bank should know where his/her money is invested. In this case the client did not know.
This judgement was made on 7 of July 2015. Banks who do not advise their clients of the risks associated with these product will result in the contract being declared null and void and the banks having to return the funds to their clients.
This serious decision by the Supreme Court overturns the ruling of the Provincial Court of Madrid, where the bank was allowed to appeal and dismissed the bank’s customer demands suggesting that four years had passed since the contract was signed on September 2005, and the filing of the lawsuit, in March 2012.
The Supreme Court annulled this judgment and dismissed the decision made by the Court of First Instance, stressing that the period of four years was not completed as had commenced from the date of the bankruptcy of Lehman Brothers. It was only then that the claimant knew the circumstances.
This will open up the possibilities for the thousands of investors who have found themselves in the same situation and have lost in many cases, their life savings.
For further information please contact CAB Spain support lawyer:
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