Brokers Pursue Cimolai For Millions in Sprawling Legal Battle

A legal battle between Cimolai SpA and a group of banks and brokerages is widening, with the finance firms lodging claims for tens of millions of euros as the Italian construction company alleges they improperly sold it currency derivatives.

Brokerages JB Drax Honore, Ebury Partners Ltd., Ballinger & Co. and GPS Capital Markets Ltd. have filed documents in a London court, alleging Cimolai owes them about $34 million combined, according to a Bloomberg review of court filings. They say that they sold derivatives linked to the euro-dollar exchange rate to the family-owed company, which failed to keep up with payments ...