Kazakhstan Wealth Fund Sued in U.S. by BTA Bank Investors
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Investors who purchased tens of millions of dollars of BTA Bank’s subordinated bonds are seeking to recover all damages from the institution’s controlling shareholder, Samruk-Kazyna, alleging in a lawsuit that they were defrauded by Kazakhstan’s sovereign wealth fund.
The investors claim in a lawsuit in Manhattan federal court that BTA, which isn’t named as a defendant, defrauded them by inducing them to buy securities as part of a 2010 debt restructuring. The bank did so, the investors claim, by promising that virtually no dividends or distributions would be paid to Samruk-Kazyna, which is a defendant.