AllianceBernstein to sue Switzerland over $17 billion Credit Suisse debt wipeout, FT reports

(Reuters) -U.S. asset manager AllianceBernstein (NYSE:) is preparing to sue Switzerland for $225 million after UBS’ takeover of Credit Suisse last year led to the erasure of $17 billion of the failed bank’s debt, the Financial Times reported on Tuesday.

AllianceBernstein is set to be added as a plaintiff in a case brought by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders in January, the report said, citing people familiar with the matter.

UBS and AllianceBernstein did not immediately respond to Reuters’ requests for a comment.

Earlier this year, a group of Credit Suisse bondholders holding $82 million worth of the failed bank’s Additional Tier 1 (AT1) debt had filed a lawsuit against Switzerland seeking compensation.

Credit Suisse collapsed in 2023 and was taken over by UBS in a rescue orchestrated by Swiss authorities. As part of that operation, Swiss regulator FINMA wrote down about $17 billion of Credit Suisse’s AT1s, angering bondholders.