Retail investors who lost money when Credit Suisse was taken over by UBS in March plan to file a lawsuit challenging the controversial buyout, the Financial Times reported on Sunday.
This content was published on
2 minutes
Reuters/FT/sb
The Swiss Investor Protection Association plans to file the claim in Zurich’s commercial court on Monday on behalf of about 500 Credit Suisse equity investors, the newspaper said.
The FT said most of the claimants are Swiss, but there are other investors from the UK, US, Germany, Austria, Thailand and Dubai. Many are former Credit Suisse staff who acquired shares as part of their remuneration.
In March, Credit Suisse was forced into an emergency takeover by rival UBS to avert bankruptcy. The demise of the 167-year-old banking institution sent shockwaves through the global financial system and is viewed as a grave embarrassment in Switzerland.
UBS agreed to buy Credit Suisse for CHF3 billion ($3.2 billion). The Swiss National Bank (SNB) smoothed the transaction by providing CHF100 billion in liquidity to UBS and Credit Suisse during the takeover. The government agreed to absorb up to CHF9 billion of potential UBS losses.
Orchestrated by Swiss authorities, the takeover denied shareholders in both banks a vote on the deal.
It is the second class action by shareholders in Credit Suisse targeting UBS, while there are several lawsuits being pursued by bondholders who were wiped out.
Last Friday, UBS announced it no longer needed government support for the takeover, in a move that may help ease public anger over the deal in the run-up to national elections in October.
Popular Stories
More
Swiss Abroad
Ups and downs: Swiss drivers benefit from world’s only mobile bridge
Swiss study: Humans can train their brain to communicate with machines
This content was published on
Humans can learn to share their thoughts with machines according to a new study by researchers at the University of Geneva.
Geneva politician arrested on suspicion of drug trafficking
This content was published on
A local Geneva politician was arrested on Wednesday as part of a major police operation to dismantle an organised drug trafficking ring.
Trade conflict: How Swiss companies are preparing for Trump tariffs
This content was published on
Switzerland has so far been spared tariff threats from the new US President Donald Trump. Nevertheless, Swiss companies are taking precautions.
Economists lower Switzerland’s growth forecast for 2025
This content was published on
Economic experts believe that Switzerland's growth will only be marginally weaker than recently. But GDP is expected to accelerate in 2026.
How the Swiss ‘trinity’ forced UBS to save Credit Suisse
This content was published on
The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.