Jefferies-Linked Fund Sues Radiant World in London Over Invalid Invoices
JEF sits 48% above its 52-week low of $35.53 on light trading volume (0.1× avg).
Summary
A fund in which Jefferies holds a minority stake, LAM Trade Finance Group II, filed a pre-action application in London's High Court on August 27 against iron ore trader Radiant World, its founder Pinkesh Nahar, Sapphire Minmetals Corp, and Chairman Rakesh Sethi. This is the first litigation in Britain in the Radiant World saga, which has already seen major traders Vitol and Cargill halt business with the firm over invalid invoice concerns. Jefferies was reportedly told that some invoices underpinning its financing to Sapphire Minmetals were not genuine. The legal action exposes Jefferies to potential credit losses and reputational risk in its trade finance operations, though the exact financial exposure is not disclosed. Watch for further court filings or disclosures from Jefferies regarding its stake in LAM Trade Finance Group II and any provisions for related losses.
At the time of this announcement, JEF was trading at $52.70 on NYSE in the Finance sector, with a market capitalization of approximately $12.1B. The 52-week trading range was $35.53 to $71.04. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.