Group of Credit Suisse bondholders plan lawsuit against Swiss government
The suit could be filed by the end of the year but is not certain to proceed, people familiar with the discussions told the FT.
People with knowledge of the matter told the FT that the investors are being represented by law firm Quinn Emanuel, which is in ongoing litigation against the parties responsible for the write-down of $17bn worth of Credit Suisse AT1 bonds in March.
According to the newspaper, the firm is arranging the lawsuit against Switzerland in the US, where it believes there is a higher likelihood of convincing a judge to waive the country's sovereign immunity rights.
UBS mulls first AT1 bonds sale since Credit Suisse takeover — reports
The lawsuit is centred around the Swiss government's decision to introduce an emergency law that allowed FINMA, the financial regulator, to overturn the traditional hierarchy among bank creditors and protect shareholders at the expense of AT1 holders.
«In essence, the claim would be seeking compensation for the destruction of [investors'] property rights,» said a person with knowledge of the plans, adding that claimants would be «seeking recourse for expropriation through the write-down order».
AT1 bonds write-off claim against Swiss regulator extended to retail investors
The suit could be filed by the end of the year but is not certain to proceed, people familiar with the discussions told the FT. Any lawsuit in the US would not include the same claims made by plaintiffs in Quinn Emanuel's existing case against FINMA, they said.
At the end of April, Quinn Emanuel's investor lawsuit against FINMA filed in April was extended to retail investors, arguing the «unlawful action» of FINMA has had «devastating consequences» on thousands of retail and small investors
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