U.S. asset manager AllianceBernstein (NYSE: AB) is preparing to sue Switzerland for $225 million after UBS’ takeover of Credit Suisse last year led to the erasure of $17 billion of the failed bank’s debt, the Financial Times reported on Tuesday.
AllianceBernstein is set to be added as a plaintiff in a case brought by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders in January, 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 holding $82 million worth of the failed bank’s Additional Tier 1 (AT1) debt had filed a lawsuit against Switzerland seeking compensation.
Credit Suisse collapsed in 2023 and was taken over by UBS in a rescue orchestrated by Swiss authorities. As part of that operation, Swiss regulator FINMA wrote down about $17 billion of Credit Suisse’s AT1s, angering bondholders.
