According to a media report, a US pension fund has filed a lawsuit in a New York court against current and former top managers at Credit Suisse. They want to hold the bankers accountable for the collapse of the Archegos hedge fund.
As the Bloomberg news agency reported on Friday evening, the Rhode Island City of Providence Pension Fund has sued more than a dozen CS executives in connection with the Archegos scandal. In the lawsuit filed on Tuesday, the fund accuses the CS managers of failing to manage risk in the business with the hedge fund Archegos Capital Management, which has since collapsed.
Twenty current and former CS top executives indicted
The lawsuit is directed against a large part of the current management as well as against the former chairman of the board of directors, the head of risk and the head of the investment bank, as Bloomberg continues to write. The report does not name any names, under the case title “Employees Retirement System for the City of Providence v. Urs Rohner at al., 651657/2022, New York State Supreme Court», the accused can be found, who, in addition to the former CS Chairman of the Board of Directors Rohner (62), also the current CEO Thomas Gottstein (58) or Roche CEO (and CS board member) Severin Schwan (54). A total of 20 people have been charged.
The accusation is that the managers failed to take timely action against the “negligent behavior” in the prime brokerage unit. The fund is said to have filed the lawsuit on behalf of all shareholders in the New York court in order to “repair the financial damage incurred which the bank incurred and could incur as a result of the suspected misconduct”.
compensation demanded
The Rhode Island fund is seeking damages on behalf of the investors and a declaration that the defendants breached their fiduciary duties to Credit Suisse. A CS spokeswoman did not want to comment on the report at the request of the AWP news agency on Friday evening.
In the wake of controversial investor Bill Hwang’s Archegos collapse in March 2021, a number of global banks and investors suffered billions of dollars in losses. Credit Suisse was hit the hardest, suffering a loss of around five billion francs last year. (SDA/vof)