Credit Suisse Executives Settle $115m Lawsuit Over Risk Management Practices.

Former Credit Suisse executives have reached a $115m settlement with shareholders to resolve a lawsuit alleging inadequate risk management practices that led to financial losses in 2020 and 2021. The settlement, led by former chairman Urs Rohner, will be paid by the insurers of the involved directors and officers. UBS Group, which acquired Credit Suisse in a government-backed rescue, will receive the funds. The lawsuit accused the executives of failures in risk management that contributed to losses due to counterparties such as Malachite Capital Management, Greensill Capital Management, and Archegos Capital Management.

A collective of former executives and directors from Credit Suisse Group, led by former chairman Urs Rohner, has reached a settlement of $115 million to resolve a shareholder lawsuit. The preliminary approval for the settlement was granted by a judge in New York. The lawsuit accused the defendants of inadequate risk management practices that led to financial losses during the years 2020 and 2021 [1].

The settlement will be paid by the insurers of the involved directors and officers, with the funds directed to UBS Group, which acquired Credit Suisse in a government-backed rescue in 2023. UBS Group will receive the settlement amount after deducting legal fees owed to the attorneys representing the investors. The specific fees have yet to be finalized but will be presented to the court later in the proceedings [2].

The lawsuit, led by the Employees Retirement System for the City of Providence, alleged that failures in risk management contributed to losses incurred when several counterparties defaulted. The counterparties included Malachite Capital Management, Greensill Capital Management, and Archegos Capital Management. Since acquiring Credit Suisse, UBS has been addressing various legal matters linked to its predecessor [3].

The settlement comes after three years of "fiercely-contested litigation" across New York, Zurich, and Valais, Switzerland, culminating from mediation efforts that commenced in May 2023 [2]. 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://www.privatebankerinternational.com/news/former-credit-suisse-executives-reach-settlement/
[2] https://www.reuters.com/sustainability/boards-policy-regulation/credit-suisse-ex-officials-reach-115-million-settlement-over-risk-management-2025-08-29/
[3] https://www.ainvest.com/news/ubs-reaches-115m-settlement-credit-suisse-derivative-case-2508/