A Japanese client has sued Merrill Lynch in Hong Kong for alleged reckless misrepresentation in selling him financial products that resulted in losses of Y1.14 billion ($13 million), according to Bloomberg.

Kozo Sugiura sued Merrill and its former private banker Takenori Suzuki for the losses sustained in connection to warrants alleging he wasn’t informed that the issuers and guarantors of his investments were Merrill-related companies and that they were not principal protected as instructed.

The investment documents were in English and a request by Mr Sugiura and his assistant for copies in Japanese was turned down, according to a lawsuit filed in Hong Kong’s High Court in November, the news agency’s report said. Mr Sugiura is seeking to be repaid for his losses as well as damages, costs and other unspecified relief.

Merrill Lynch did not immediately respond to WealthBriefing seeking a comment on the matter.

The report highlights how investors in Asia and other regions have resorted to litigation in the face of losses sustained during the financial crisis. In the US, for example, a number of banks have compensated investors who bought hard-hit auction rate securities. In Asia, Citigroup reportedly settled a lawsuit with a Singapore client in October. And in the UK, there has been litigation in connection to investments in AIG funds, for example.

Last year, WealthBriefing reported that figures in the private banking industry had not made sufficient preparation for litigation by angry clients who had lost some of their assets in the credit crunch.