Goldman Sachs is countersuing two investors in Singapore following a crash in penny stocks.

Goldman Sachs is countersuing two investors in Singapore following a crash in penny stocks, according to The Straits Times (of Singapore). The publication said it understands that the US firm filed court papers with the High Court in London late in December.

The suits are in response to legal action taken by James Hong, the executive director of Blumont Group, and Ms Quah Su-Ling, the chief executive of Ipco International, against Goldman Sachs, the publication said. The pair allege that Goldman Sachs forcibly sold their stakes in the penny stock trio at the centre of the crash - Blumont Group, Asiasons Capital and LionGold Corp, it said.

This publication is in contact with Goldman Sachs about the matter; the firm declined to comment.

The Straits Times report said Goldman Sachs had issued a demand notice, giving both parties less than two hours to raise more than $60 million each to cover their loans. The parties failed to meet the deadline and were deemed to have defaulted on the obligations, which led to force-selling on 2 October, 2013.