Bank of America Corp.'s Merrill Lynch & Co. in Hong Kong has been issued with a writ of summons by a Japanese client for alleged reckless misrepresentation in selling him warrants that resulted in losses of 1.14bn yen ($13m).

According to a law suit issued from the registry of the High Court in Hong Kong on 10 November, Kozo Sugiura is suing Merrill and its former private banker Takenori Suzuki for losses incurred.

Sugiura has alleged he was not informed that a series of warrant package investments made on his behalf were not principal protected as he had orally requested. He has also claimed he asked for a translation of the investment documents as they were in English but this request was turned down. He alleges he was never made aware of the risks relating to the principal sum.Sugiura is seeking to be repaid for his losses as well as damages, costs and further and other relief.

The case is Shin-Ei Sangyo Co. and STP Co. v. Merrill Lynch and Takenori Suzuki, HCA2272/2009, Hong Kong High Court.