Authorities filed the second lawsuit due to the urgent takeover of Credit Suisse.

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Another law firm has sued Finma, the financial markets supervisory agency, in a litigation over the alleged worthlessness declaration of Credit Suisse’s so-called AT1 bonds, ordered by Swiss authorities. Pallas Partners says it represents investors holding more than $1.65 billion in AT1 bonds.

The New York (US) and London-based law firm represents two groups of AT1 bondholders, according to a statement released to Anglo-Saxon media on Tuesday. The first group includes over 90 global institutional investors and asset managers with over $1.35 billion in AT1 bonds. The second group consists of small investors and family offices with over $300 million in bonds.

Migros is also suing because of CS copycats

Per the announcement, Pallas requests that the deletion of the bonds be declared invalid during the urgent takeover of the hard-hit CS by UBS in the case in the Federal Administrative Court. According to lawyers, Finma’s actions represent an “arbitrary violation of property rights” of AT1 owners and therefore violate the constitution.

Two weeks ago, law firm Quinn Emanuel Urquhart & Sullivan announced that it will file a lawsuit in Federal Administrative Court. According to their information, the international law firm represents a group of creditors holding more than a quarter of the affected bonds worth CHF 4.5 billion. This includes the Migros Pension Fund. Last week, Quinn Emmanuel also announced a coordinated approach with five partner companies.

As part of the authorities’ takeover of troubled Credit Suisse by UBS on March 19, CS’s Additional Tier 1 bonds (AT1) with a face value of approximately CHF 16 billion were declared worthless. The decision also made waves in the international arena. (SDA/sfa)

Source :Blick