AllianceBernstein Moves to Sue Switzerland Over Credit Suisse Collapse

AllianceBernstein is preparing to sue Switzerland for $225 million following the $17 billion debt erasure tied to UBS' takeover of Credit Suisse. The asset manager will join a lawsuit initiated by Credit Suisse bondholders, seeking compensation for the losses incurred during the bank's 2023 collapse.

AllianceBernstein, a U.S. asset manager, is gearing up to file a $225 million lawsuit against Switzerland. This move is in response to the significant loss incurred last year when UBS took over Credit Suisse, resulting in the write-off of $17 billion of the bank's debt, according to the Financial Times.

AllianceBernstein plans to join an already existing legal action, which was launched by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders in January. These bondholders are seeking compensation following the financial turmoil that surrounded Credit Suisse's downfall. UBS and AllianceBernstein have yet to provide any public comments on the matter.

Earlier in the year, a group of Credit Suisse bondholders, holding $82 million in the bank's Additional Tier 1 debt, filed a similar lawsuit against Switzerland. The institution's collapse in 2023 and the subsequent acquisition by UBS, arranged by Swiss authorities, led Swiss regulator FINMA to write down approximately $17 billion in AT1s, sparking outrage among investors.

(With inputs from agencies.)