UBS Reaches $115M Settlement in Credit Suisse Derivative Case

UBS Group AG has reached a $115 million settlement in a derivative action related to its merger with Credit Suisse. The action alleged that former Credit Suisse directors and executives failed to establish effective risk management systems, leading to significant financial losses. The settlement is subject to court approval and may impact UBS's financial and legal standing.

UBS Group AG has reached a $115 million settlement in a derivative action related to its merger with Credit Suisse. The action alleged that former Credit Suisse directors and executives failed to establish effective risk management systems, leading to significant financial losses. The settlement is subject to court approval and may impact UBS's financial and legal standing.

The settlement, preliminarily approved by a New York judge on Thursday, will be paid to UBS Group AG as the successor to Credit Suisse. The funds will be funded by the insurers of the directors and officers involved in the case [1]. The settlement follows three years of litigation in New York, Zurich, and Valais, Switzerland, and is the result of mediation that began in May 2023 [3].

The shareholders, led by the Employees Retirement System for the City of Providence, claimed that the defendants' negligence violated Swiss law, leaving Credit Suisse vulnerable as counterparties including Archegos Capital Management, Greensill Capital Management, and Malachite Capital Management defaulted [4]. The settlement includes a provision for legal fees to be paid to the investors' attorneys, although the exact amount has not been agreed upon.

UBS has been working to resolve a list of Credit Suisse-linked litigation ever since it agreed to take over its rival as part of a government-engineered rescue in 2023. The merger occurred after Credit Suisse faced a series of adverse events, including significant losses from Archegos Capital Management, ultimately leading to its collapse [3].

Former Credit Suisse Chairman Urs Rohner, who left his post in April 2021, was among the defendants in the case. All defendants denied wrongdoing but agreed to settle the lawsuit [4]. The settlement is a significant step in resolving the complex legal issues stemming from Credit Suisse's collapse and UBS's subsequent merger.

References:
[1] https://news.bloomberglaw.com/banking-law/ex-credit-suisse-executives-settle-risk-suit-for-115-million
[2] https://www.hindustantimes.com/business/excredit-suisse-executives-to-pay-ubs-group-115-million-to-settle-risk-suit-101756479733511.html
[3] https://www.bloomberg.com/news/articles/2025-08-29/ex-credit-suisse-executives-settle-risk-suit-for-115-million
[4] https://www.marketscreener.com/news/credit-suisse-ex-officials-reach-115-million-settlement-over-risk-management-ce7c50dddd8df621