Credit Suisse loses bid to dismiss lawsuit in the US
New York — A US judge has rejected Credit Suisse Group’s bid to dismiss a lawsuit accusing the Swiss bank of defrauding shareholders about its risk appetite and risk appetite before taking $1bn of write-downs on souring debt. The decision by US district judge Lorna Schofield in Manhattan was made public on Wednesday. Schofield said investors who lost money in Credit Suisse’s American depositary receipts could pursue claims that the bank, CEO Tidjane Thiam and other defendants intended to mislead them, by touting its “comprehensive” risk controls and “binding” limits on its exposure to risky and illiquid debt. Credit Suisse took two write-downs in early 2016 on $4.3bn of collateralised loan obligations and distressed debt, contributing to its first full-year loss since the 2008 global financial crisis. The bank’s share price fell 11% after news of the first write-down. Other defendants include CFO David Mathers, and Thiam’s predecessor, Brady Dougan. Credit Suisse had no immediate co...
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