London (Reuters) – A law firm based in Zurich filed a complaint with the Swiss Federal Court, the highest court in the country, to contest the delay taken by a court to process the request of investors concerning the depreciation of the AT1 obligations of Credit Suisse, according to a legal document consulted by Reuters.
A spokesperson for the Federal Court confirmed that the court had received the complaint.
Hundreds of holders of these obligations continued in April 2023 the Federal Financial Market Supervisory Authority (FINMA), the Helvetian stock market gendarme, before the federal administrative court to recover the 16 billion Swiss francs for losses on these AT1 obligations which were destroyed during the acquisition of the banking group by UBS.
However, no significant activity has taken place on the part of the federal administrative court since the spring of 2024, as shown by the document submitted in German.
“The procedure is particularly difficult due to its magnitude, the high number of parties and the complexity of legal issues at stake, and it includes many procedural stages. This is a multi -party procedure, within the framework of which it is also necessary to ensure that all complainants or their legal representatives have the right to be heard. We are dealing with the procedure in priority,” said a representative of the federal administrative court.
The complaint was filed by the Grosz I Poledna law firm, based in Zurich, acting for Pallas, the law firm representing investors, around mid-May, according to a close source.
Pallas represents approximately 800 customers who, at the time of depreciation, held around $ 2 billion in Credit Suisse bonds, said a representative of the law firm in Reuters.
Joints, Pallas and Finma did not wish to comment.
“Although this affair is unprecedented for the Swiss courts, because there have never been so many appellants contesting a finance from Finma, it should have already progressed, because the appellants have the right to see their case examined quickly,” said Jonas Hertner, a lawyer based in Zurich who previously represented the Credit Suisse Credit customers in the Credit of Avocats Quinn Emanuel.
(Report of Stefania Spezzati in London, with Oliver Hirt in Zurich; Bertrand de Meyer, edited by Blandine Hénault)
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