Swiss investor group lawsuit to seek compensation over UBS-Credit Suisse deal
Reuters
Published Jul 17, 2023 11:27
Updated Jul 17, 2023 16:05
ZURICH (Reuters) - A Swiss investors' association is planning to file a lawsuit seeking compensation for former Credit Suisse (SIX:CSGN) shareholders, the latest legal action triggered by the bank's emergency takeover by its cross-town rival UBS.
"Due to the large number of inquiries, the Swiss Association for the Protection of Investors (SASV) has decided to coordinate a lawsuit under Art. 105 of the Merger Act," the group said in a statement.
"The aim is to obtain a cash compensation payment for Credit Suisse shareholders corresponding to the value between the share price set by the merger agreement and the share price determined by the court," it added.
UBS declined to comment.
Under the deal, sealed last month, Credit Suisse shareholders were offered one UBS share for 22.48 Credit Suisse shares, valuing the stricken bank at 3 billion Swiss francs ($3.49 billion).
That compared to a market capitalisation of around 7 billion Swiss francs on the last trading day before the deal was announced in March.
A separate class action was launched last month by Swiss legal start up LegalPass seeking a higher payout from the deal for shareholders.
Hundreds of claims have also been filed by holders of Credit Suisse's Additional Tier 1 bonds - which were all written down to zero - claiming compensation.
A group of Credit Suisse AT1 bondholders has also filed a class action suit accusing former executives at the Swiss bank, including three past CEOs, of being responsible for the bank's downfall.
SASV said shareholders had until Aug. 4 to contact the group to join the action, which must be filed by Aug. 14 under Swiss merger law.
($1 = 0.8585 Swiss francs)
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Written By: Reuters
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