Credit Suisse to pay $70m to settle suit
Credit Suisse has agreed to pay $70 million (SFr65 million) to settle a class-action suit by investors claiming it misstated its subprime asset losses.
In an agreement filed in Manhattan, the Swiss bank said it would settle with investors who purchased United States depositary shares of the company’s stock on the New York Exchange between February 15, 2007 and April 14, 2008.
US residents who purchased Credit Suisse stock on the Swiss stock exchange during the period are also included. The settlement must be approved by the court.
Defendants had alleged that during the period in question, Credit Suisse and some of its executives, including chief executive Brady Dougan, issued “materially false and misleading statements regarding the company’s business and financial results”.
Specifically, they alleged that Credit Suisse “concealed the company’s failure to write down impaired securities containing mortgage-related debt”.
In the settlement, Credit Suisse said it continued to “deny all charges of wrongdoing or liability”. However, the bank said it concluded that “further continuation of the action would be protracted and expensive”.
A spokesman declined to comment on the proposed settlement.
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