UBS starts the week on a blue note as a group of approximately 1,000 stakeholders plans to file a court claim in Zurich against it. This action adds to the growing legal headache of the biggest bank in Switzerland after taking over the sinking Credit Suisse in March 2023 in an emergency bid.
More legal setbacks for UBS after Credit Suisse takeover
Arik Röschke Source: SASV
The Swiss Association for the Protection of Investors (SASV – or Schweizerischer Ankegerschutzverein) represents retail investors. The SASV’s claim includes investors from the UK who took a substantial financial knock during the hurried takeover. SASV’s general secretary, Arik Röschke, stated:
Credit Suisse has a strong presence in London, and many employees received shares as part of their remuneration that are almost worthless now. The frustration among staff is therefore enormous, as I have been told.
The move, which was choreographed by the Swiss authorities, saw UBS acquiring Credit Suisse for approximately $3.25bn. At the time, this was well below market value but deemed necessary to avert a worldwide banking catastrophe.
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This is the second class action against UBS, as shareholders did not get to vote on the emergency takeover. Bondholders who lost everything are also bringing legal action against Switzerland’s financial regulator.
Receiving one UBS share for every 22.48 Credit Suisse shares, SASV maintains the frustration is understandable, especially since one Credit Suisse share had a value of CHF13.70 on 31 March 2023. The aggrieved feel the exchange ratio was based on rushed actions in favour of UBS.
