Credit Suisse Battles SoftBank in $440M Lawsuit Over Greensill Collapse

Credit Suisse launched a $440 million lawsuit against SoftBank Group over Greensill Capital's collapse, centering on funds connected to Katerra. The case highlights unresolved losses and regulatory scrutiny. Key testimonies from Greensill's founder, Lex Greensill, and former Credit Suisse investment chair, Eric Varvel, are expected.

The legal showdown between Credit Suisse and Japan's SoftBank Group commenced in London over a $440 million claim linked to the downfall of finance firm Greensill Capital. This high-stakes lawsuit focuses on transactions with U.S. construction company Katerra, backed by SoftBank, as key testimonies from industry figures loom.

Credit Suisse's closure of $10 billion in funds amid Greensill's collapse led to UBS Group's rescue of the storied bank, now pursuing the case against SoftBank. Both Lex Greensill, Greensill Capital's founder, and Eric Varvel, ex-chairman of Credit Suisse's investment bank, are lined up to testify.

Central to the case, Credit Suisse argues that SoftBank influenced Greensill in relinquishing Katerra's debts for shares transferred to SoftBank entities, resulting in Credit Suisse's financial shortfall. In response, SoftBank labels the suit meritless, citing their $440 million payment as an attempt to settle obligations with Credit Suisse.

(With inputs from agencies.)