A Liechtenstein-based law firm representing former shareholders of Credit Suisse (CS) is demanding a new valuation of the former major bank. This action advances the legal battle to the next stage.
Lennert Partners a law firm from Triesen in Liechtenstein, is exerting pressure on UBS in a legal dispute before the Zurich Commercial Court. In a statement released on Friday, the firm called for a valuation of Credit Suisse based on «real conditions, not a fictitious alternative scenario» to determine the appropriate exchange ratio.
This demand follows a response from UBS in the Zurich Commercial Court, where the combined banking giant argued that without the merger agreement, Credit Suisse would have collapsed and shareholders would have faced a total loss.
The Dispute: Was CS Under-Capitalized?
Lennert Partners, from Triesen in Liechtenstein, is involved in the ongoing class action lawsuit against UBS in the Zurich Commercial Court, representing numerous former Credit Suisse shareholders holding multi-million-dollar stakes.
The plaintiffs consider the agreed conversion ratio of one UBS share for 22.48 Credit Suisse shares in the forced sale of Credit Suisse to be unjust, seeking compensation—up to 10.01 francs per share according to Lennert Partners. UBS paid approximately 3 billion francs ($3.5 billion) for the troubled bank, whereas Credit Suisse’s shares were valued at 1.86 francs each, nearly 2.5 times higher, prior to the deal.
Question of Continuing the Swiss Business
«Indeed, it was positively established at the time of the merger decision that Credit Suisse would continue as part of UBS and would not fall into bankruptcy. Therefore, the key factor is the going-concern value of Credit Suisse as a future part of UBS, taking into account the anticipated synergy effects resulting from the merger,», said Philipp Lennert, Managing Partner of the law firm.
Doubts About UBS’s Expert Report
Lennert Partners highlights that UBS has submitted an expert report with its legal response, intended to support the argument of Credit Suisse’s worthlessness at the time of the merger decision. They argue that this report lacks a concrete valuation of Credit Suisse and relies instead on general principles from U.S. bank insolvencies, which they claim are not applicable to the Swiss context.
According to their statement, Lennert Partners has submitted two independent expert reports: a legal opinion and a valuation report.
«The legal opinion, citing Swiss Federal Court rulings, confirms that Credit Suisse should be valued based on its actual continuation as part of UBS, rather than a hypothetical liquidation scenario,» the firm stated. The valuation report suggests a value of up to 10.01 francs per share.
