(Reuters) – U.S. asset manager AllianceBernstein is preparing to sue Switzerland for $225 million after UBS’ takeover of Credit Suisse last year led to the cancellation of $17 billion of the bankrupt bank’s debt, the bank reported. Financial Times Tuesday.
AllianceBernstein will be added in January as a plaintiff in a case brought by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders, the report said, citing people familiar with the matter.
UBS and AllianceBernstein did not immediately respond to Reuters requests for comment.
Earlier this year, a group of Credit Suisse bondholders, who held $82 million of the failed bank’s additional Tier 1 (AT1) debt, filed a lawsuit against Switzerland seeking damages.
Credit Suisse collapsed in 2023 and was acquired by UBS in a bailout orchestrated by Swiss authorities. As part of that operation, Swiss regulator FINMA wrote down about $17 billion of Credit Suisse’s AT1s, angering bondholders.
(Reporting by Angela Christy in Bengaluru; Editing by Varun HK)
