Major Swiss bank Credit Suisse has agreed to pay $15.5 million (CHF14.6 million) to settle a dispute with shareholders in the United States, according to court filings made on Friday.This content was published on July 11, 2020 - 10:51
The plaintiffs, led by four pension funds, accused Credit Suisse of defrauding shareholders about its risk appetite and management before taking $1 billion in writedowns on souring debt.
The bank had boasted at the time of “comprehensive” risk controls and “binding" limits on its exposure to risky and illiquid debt, according to the Reuters news agency. Credit Suisse denies any wrongdoing.
The preliminary settlement of the proposed class action by holders of the Swiss bank's American depositary receipts from March 2015 to February 2016 requires approval by a federal court in Manhattan.