In the legal battle over the write-down of AT1 bonds before a New York court, US lawyers are ramping up their efforts, putting Switzerland under mounting pressure.
The acquisition of Credit Suisse (CS) remains unresolved, even following the presentation of the parliamentary inquiry report. In fact, U.S. plaintiffs contesting the AT1 bond write-down view the report as an opportunity to strengthen their case against Switzerland.
Leading the charge, the law firm Quinn Emanuel Urquhart & Sullivan filed an amended complaint late Wednesday, escalating their lawsuit. The revised filing includes additional plaintiffs and incorporates findings from the parliamentary report to strengthen their case.
Dispute Value Significantly Higher
The lawsuit now names numerous entities, including investment funds, corporations, and individuals from countries such as Luxembourg, the US, Japan, and the Cayman Islands.
The dispute's monetary value has also surged—from an initial $82 million to a staggering $372 million.
Allegation: Violation of Property Rights
«The growing interest of impacted parties in joining the U.S. complaint highlights the far-reaching impact of the AT1 write-down on a diverse range of investors, including retail investors,» said Dennis Hranitzky, Head of Sovereign Litigation and Global Asset Recovery Practices at Quinn Emanuel. «This claim further underscores the unjust violation of the property rights of AT1 instrument holders.»
Lawsuit Targets Switzerland
In June 2024, Quinn Emanuel filed the lawsuit against the Swiss Confederation in the United States District Court for the Southern District of New York. The firm alleges that Switzerland orchestrated Credit Suisse's takeover by UBS, acting as a «private investment bank» in the process.
This US case is distinctive because, unlike other lawsuits targeting the Swiss Financial Market Supervisory Authority (FINMA), it directly targets the Swiss Confederation.
No Decision Expected Before Summer
Switzerland has until 3 February 2025, to respond to the amended complaint. Shortly thereafter, the court will hold a case management conference on 5 February 2025. However, a decision from the New York court is unlikely before the summer of this year.
