(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.
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