Bloomberg News reports that Radiant World has sued Glencore for $2 Billion.

Bloomberg News reported on Tuesday that Radiant World and Sapphire Minmetals filed a lawsuit in Singapore against London-listed Glencore, seeking $2 billion in damages.

The chairman of the trading firm,?Rakesh?Sethi, said that Sapphire Minmetals (which was formerly part of Radiant World) would be joining forces with a Singapore-based iron ore broker to make the claim.

Radiant World and Sapphire Minmetals have been ordered by a London court to freeze up to $499m in assets. A fund managed by Jefferies had alleged that they had used fake iron ore bills in a scheme of fraud.

We were unable to verify the report immediately. Radiant World and Sapphire Minmetals didn't immediately respond to our request for comment.

Glencore, when asked to comment on the matter, referred back to a press release that was released earlier in the day.

The miner confirmed that Radiant World, and its associated companies,?sent false invoices and contracts to financial institutions purporting to come from Glencore employees.

Glencore also said that it had suffered losses and was 'exposed to risk' through its dealings with these companies, and would take appropriate action.

Media reports also claim that Sapphire Minmetals' invoices have been scrutinized.

Radiant 'World and Sapphire Minmetals claim to have significant claims against Glencore. The miner dismissed the claims as being "without merit" and added that it would vigorously contest them.

Glencore announced in August that it had ceased all business with Radiant World and terminated all contracts.

(source: Reuters)