AIB facing legal action from US investors

The Allied Irish Bank is facing legal action in the United States for allegedly failing to reflect the losses incurred by trader John Rusnak in its financial reports since 1999.

Mr Rusnak, a trader in AIB’s Allfirst subsidiary, lost almost $700m on a series of transactions over the past number of years.

When the losses were revealed last month, the AIB share price fell by around 16%. Now investors with AIB shares in the US are suing the bank to recover their losses.