Credit Suisse Investors Lose Bid to Litigate Claims in US Court
Credit Suisse investors’ attempt to litigate claims against the bank and its affiliates in a US court was rejected, with the case being sent to Switzerland.Summary
Investors in Credit Suisse Group AG have lost their bid to pursue a class action lawsuit in a US court against the bank’s subsidiaries, former leaders, and auditor KPMG LLP. The US Court of Appeals for the Second Circuit affirmed a district court’s decision to dismiss the case, stating that New York was not a convenient forum given the overwhelmingly Swiss nature of the dispute.
The lawsuit, seeking $120 billion in damages, alleged mismanagement and racketeering contributed to Credit Suisse’s collapse in March 2023, ultimately leading to its acquisition by UBS Group AG. Investors claimed violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and Swiss law. While the RICO claims were permanently dismissed, the court allowed the Swiss law claims to be refiled in Switzerland.
The appeals court agreed with the lower court’s assessment that, despite some connection to New York, the core of the dispute and the relevant conduct were centered in Switzerland. The investors now have the option to refile their claims in a Swiss court.
(Source：Bloomberg Tax News)