AllianceBernstein Prepares to Sue Switzerland

(Reuters) – U.S. asset manager AllianceBernstein (NYSE: AB) is preparing to sue Switzerland for $225 million following UBS' takeover of Credit Suisse last year, which resulted in the erasure of $17 billion of the failed bank's debt, as reported by the Financial Times on Tuesday.

Lawsuit Details

AllianceBernstein is expected to join a lawsuit filed by the law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders in January, according to sources familiar with the situation.

UBS and AllianceBernstein have not provided immediate comments to Reuters.

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

Credit Suisse collapsed in 2023 and was taken over by UBS in a rescue operation led by Swiss authorities. During this process, Swiss regulator FINMA wrote down approximately $17 billion of Credit Suisse's AT1s, which has angered bondholders.