قالب وردپرس درنا توس
Home / Insurance / Credit Suisse settles US shareholder lawsuit

Credit Suisse settles US shareholder lawsuit



(Reuters) — Credit Suisse Group reached a $32.5 million settlement to resolve a lawsuit accusing the Swiss bank of misleading shareholders about how well it managed risks, including its exposure to “high-risk” clients such as Archegos Capital Management .

A preliminary settlement of the proposed class action was filed Friday in U.S. District Court in Manhattan. It requires a judge’s approval.

The bank was accused of playing “a kind of high finance game of Russian roulette” by allowing hedge funds and other “prime” clients to make risky multibillion-dollar bets with its credit, despite publicly pledging a “core commitment” to manage its credit. risk limits, risk review and credit exposure.

Credit Suisse̵

7;s “laissez-faire” approach led to at least $5.5 billion in losses, including from the collapses of Archegos and British financier Greensill Capital, which caused shareholders to lose money when the price of its U.S. depository shares fell, court papers claimed.

The bank denied wrongdoing by agreeing to settle. It said in a statement that it was satisfied to settle the suit.

Credit Suisse has called 2022 a “transition year” as it reduces risk-taking and installed restructuring expert Ulrich Koerner as CEO.

Archego’s collapse caused about $10 billion in bank losses and wiped out more than $100 billion in shareholder value.

Friday’s settlement covers ADR investors from 29 October 2020 to 31 March 2021.

The lead plaintiff is the Sheet Metal Workers Pension Plan of Northern California. Its lawyers plan to seek up to 27.5% of the settlement amount, or about $8.9 million, in legal fees.


Source link