Wealthy investors are lawyering-up against Credit Suisse after the bank lost CHF 4.4bn following the collapse of the US Hedge fund Archegos.
The Swiss bank had loaned the fund billions – which the fund had invested in stocks.
Law firms across Europe are now considering action against Credit Suisse on behalf of investors who have lost money.
While Swiss law doesn’t allow class action law suits as in the US, there are ways claims could be bundled together in one case.
Volker Rosengarten from the Zurich office of the US firm, Quinn Emanual Urquhart and Sullivan, told the Sonntags Blick they are preparing action against Credit Suisse.
The bank has already fired investment managers involved and announced bonuses have been reduced.
But the path to compensation is unclear. According to a law professor at the University of Basel, Corinne Widmer-Lüchinger, investors have to prove the bank broke its own guidelines and investors with a track record of risky investments may also be unlucky in seeking compensation.
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