Big Law

Appaloosa Sues UBS Over Credit Suisse $17 Billion Bond Wipeout

A new lawsuit by U.S. hedge fund Appaloosa LP accuses the former Credit Suisse of misleading investors about its health before $17 billion of its bonds were written down to zero in a government-orchestrated rescue by Swiss rival UBS.

In a complaint filed on Tuesday in the Newark, New Jersey federal court, Appaloosa said two investors it advised suffered significant losses when their Additional Tier 1 bonds were wiped out in March 2023, just 1-1/2 weeks after they began purchases.

Appaloosa said Credit Suisse Chief Executive Ulrich Koerner falsely proclaimed that liquidity was “very strong” and “getting stronger” though the bank was suffering a deposit run, mirroring a run that led to Silicon Valley Bank’s collapse that month.

Read the source article at U.S. News

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