Retail investors who lost money when Credit Suisse was taken over by UBS in March plan to file a lawsuit challenging the controversial buyout, the Financial Times reported on Sunday.
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The Swiss Investor Protection Association plans to file the claim in Zurich’s commercial court on Monday on behalf of about 500 Credit Suisse equity investors, the newspaper said.
The FT said most of the claimants are Swiss, but there are other investors from the UK, US, Germany, Austria, Thailand and Dubai. Many are former Credit Suisse staff who acquired shares as part of their remuneration.
In March, Credit Suisse was forced into an emergency takeover by rival UBS to avert bankruptcy. The demise of the 167-year-old banking institution sent shockwaves through the global financial system and is viewed as a grave embarrassment in Switzerland.
UBS agreed to buy Credit Suisse for CHF3 billion ($3.2 billion). The Swiss National Bank (SNB) smoothed the transaction by providing CHF100 billion in liquidity to UBS and Credit Suisse during the takeover. The government agreed to absorb up to CHF9 billion of potential UBS losses.
Orchestrated by Swiss authorities, the takeover denied shareholders in both banks a vote on the deal.
It is the second class action by shareholders in Credit Suisse targeting UBS, while there are several lawsuits being pursued by bondholders who were wiped out.
Last Friday, UBS announced it no longer needed government support for the takeover, in a move that may help ease public anger over the deal in the run-up to national elections in October.
Swiss food giant Nestlé to invest millions in Nescafé in Spain
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The Swiss multinational is to invest €15 million (CHF14.3 million) in its Nescafé factory, which produces instant coffee and Nescafé Dolce Gusto capsules, in Girona near Barcelona.
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The Swiss bank UBS was fined €75,000 (CHF71,410), the maximum penalty, in Paris on Monday for moral harassment by its French subsidiary of two whistleblowers.
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Top Swiss court approves appeal against asbestos ruling
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Swiss singer Zoë Më unveils song ‘Voyage’ for 2025 Eurovision contest
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Singer-songwriter Zoë Më, who will represent Switzerland at the Eurovision Song Contest 2025 in Basel, unveiled her ballad Voyage on Monday.
Switzerland’s image at stake in current multilateralism crisis, says Geneva politician
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The Swiss government's reaction to the current crisis in multilateralism is not congruent with what is at stake for International Geneva, says the head of the Geneva Government.
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How the Swiss ‘trinity’ forced UBS to save Credit Suisse
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The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.
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