A Milan judge threw out a prosecutor’s request to indict Nomura Holdings Inc. because the notification to the bank wasn’t properly made, according to a defense lawyer for the Japanese firm.
Judge Livio Cristofano made the decision on Friday during a preliminary hearing in the case that involves a derivatives contract arranged by Nomura to allegedly hide losses at Banca Monte dei Paschi di Siena SpA. Prosecutors can submit a new indictment request.
The judge is reviewing requests to indict Nomura and two of its bankers, as well as Monte Paschi and three former managers of the Italian lender. They are suspected of falsifying accounts and manipulating markets after an investigation revealed that the 2009 deal, dubbed Alexandria, was designed to disguise losses from a previous investment.