A retail investor has taken civil action against officials of Country Group Securities (CGS) for allegedly tricking him into investing in shares of Angpao Assets (A-PAO), later renamed Nusasiri Plc (NUSA), causing him damages.
The court will hear the case on Wednesday.
Paphawichaya Nobu, the plaintiff, said the Securities and Exchange Commission recently suspended eight CGS employees involved in the case.
Even if the court rules in his favour, he will have to file a criminal complaint in order to seek compensation, he said.
"It's not that I refuse to bear any investment risk, but I was lied to since the beginning. That is unacceptable," said Mr Paphawichaya.
In early September 2011, he received a call from Uraiwan Panasuthna, who was his marketing officer and friend at CGS.
She tried to convince him to invest in A-PAO shares.
The property developer at that time issued new shares in a public offering (PO) prior to resuming trade on Sept 9, 2011 on the Stock Exchange of Thailand.
The offering price was 1.50 baht each.
Mr Paphawichaya said Ms Uraiwan assured him the share price would double from the PO price, saying the wife of the company's owner had told her colleagues this.
He then decided to buy 300,000 shares and transferred the money to the personal account of Krissanasan Thirapornamornrat, Ms Uraiwan's colleague.
A-PAO shares on the first day of resuming trade hovered around 1.25 baht and continued sinking in the following days.
Even so, Ms Uraiwan recommended that Mr Paphawichaya buy yet more Angpao shares to average the cost, so he increased his holding in Angpao to 2.8 million shares.
The plaintiff's lawyer Arthorn Damkong said Mr Paphawichaya, from a preliminary investigation, could demand 10 million baht in compensation for the damages, based on losses from investment and opportunity costs.
Angpao Assets, previously known as Thai Durable Textile (TDT), had financial problems and was in rehabilitation for a number of years. TDT was suspended from trading in 2005, when Angpao, owned by the Thepcharoen family, launched a backdoor listing and held a 56% stake.
TDT was renamed Angpao Assets afterward and recently changed its shareholding structure. The last share price was 50 satang.