Credit Suisse and Softbank are squaring off in a London court in the Greensill case. Now, the lawsuit faces challenges because its new owner UBS has client relationships with the Japanese financial conglomerate.
The case against Softbank could falter following UBS's takeover of Credit Suisse. Now that the acquisition has closed, UBS lawyers are going through all of the legacy cases and taking into account what potential damage UBS's business interests could suffer should they pursue them, according to a «Financial Times» (behind paywall) report Wednesday, citing sources.
Last year, UBS was among a group of banks that sold a block of 213 million Alibaba shares, raising around $22 billion for Softbank.
Softbank Counters Allegations
Meanwhile, Softbank has filed its statement of defense against Credit Suisse's $440 million claim in court, saying the bank wants to shift the blame for its failures onto others. Credit Suisse was forced to freeze funds with $10 billion in client money two years ago after supply chain finance firm Greensill went bankrupt.
The lawsuit accuses Softbank of engineering a debt restructuring of US construction company Katerra with that allegedly working to the detriment of Credit Suisse clients. The company was a client of Greensill and financed by Softbank. Credit Suisse and UBS declined to comment to the «Financial Times».
