|
A
preliminary settlement of the proposed class action was filed on
Friday with the U.S. District Court in Manhattan, and requires a
judge's approval.
The bank was accused of playing "a kind of high-finance game of
Russian roulette" by letting hedge funds and other "prime"
customers make risky, multi-billion dollar bets with its credit,
despite publicly pledging a "core commitment" to managing its
risk limits, risk oversight and credit exposure.
Credit Suisse's "laissez-faire" approach led to at least $5.5
billion of losses, including from the collapses of Archegos and
British financier Greensill Capital, causing shareholders to
lose money as the price of its American depositary shares fell,
court papers alleged.
The bank denied wrongdoing in agreeing to settle. It said in a
statement that it was pleased to resolve the lawsuit.
Credit Suisse has dubbed 2022 a "transition" year as it reduces
risk-taking, and installed restructuring expert Ulrich Koerner
as chief executive.
Archegos' collapse caused about $10 billion of losses at banks
and wiped out more than $100 billion of shareholder value.
Friday's settlement covers ADR investors from Oct. 29, 2020 to
March 31, 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, for legal fees.
The case is City of St. Clair Shores Police & Fire Retirement
System v Credit Suisse Group AG, U.S. District Court, Southern
District of New York, No. 21-03385.
(Reporting by Jonathan Stempel in New York; Editing by Daniel
Wallis and Cynthia Osterman)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
