Nomura (NMR) is being sued by a fund operated by Elara Capital in a London court, Bloomberg reported Tuesday.

The lawsuit is over allegations that the Japanese investment bank needlessly cost it $43 million in losses when it called in $205 million in loans used to invest in the conglomerate of Indian billionaire Gautam Adani, the report said.

Adani was then under scrutiny amid fraud and stock manipulation allegations by a short-seller that implicated Elara, the report said.

Nomura and Elara did not immediately reply to MT Newswires' request for comment.

Shares of Nomura were down more than 1% in recent Tuesday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)