According to a media report, a US pension fund has filed a lawsuit in New York court against current and former senior managers of Credit Suisse. They want to hold bankers responsible for the collapse of the Archegos hedge fund.
As Bloomberg News reported on Friday evening, the Rhode Island City Pension Fund in Providence sued more than a dozen CS executives in connection with the Archegos scandal. In the lawsuit filed on Tuesday, the fund accuses CS managers of failing to manage risk in the business with hedge fund Archegos Capital Management, which has since collapsed.
Twenty current and former senior executives of CS . indicted
The lawsuit is against a large portion of the current management as well as against the former chairman, chief risk officer, and head of the investment bank, Bloomberg continues to write. The report did not name any names, under the case title “Providence City Employee Retirement System v. Urs Rohner at al., 651657/2022, New York State High Court”, to be found, who in addition to former CS Chairman Rohner (62 ), also 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 managers failed to take timely action against “negligent behavior” in the main brokerage unit. The fund is said to have filed the lawsuit on behalf of all shareholders in a New York court in order to “repair the financial damage the bank has incurred and which it could incur as a result of suspected misconduct”.
The Rhode Island Fund is seeking damages on behalf of the investors and a declaration that the defendants have breached their fiduciary duties to Credit Suisse. A CS spokeswoman did not want to comment on the report at the request of AWP News Friday evening.
In the wake of the Archegos collapse of controversial investor Bill Huang in March 2021, a number of global banks and investors suffered billions of dollars in losses. The worst hit was Credit Suisse, which incurred losses of about five billion francs last year. (SDA / vof)
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