March 11 (Bloomberg) -- FGIC Corp., a U.S. bond insurer, filed a lawsuit against German bank IKB Deutsche Industriebank AG, the Financial Times reported.

The complaint accuses IKB and its affiliates of providing false and misleading information that FGIC says left it facing potential losses of $1.9 billion, the FT said.

The bond insurer said its exposure to an IKB special investment vehicle contributed to a ratings downgrade of the group, the newspaper said, without saying where it obtained the information.

IKB wouldn't comment on the legal action, the FT said.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

Last Updated: March 10, 2008 20:10 EDT