Who approved the preliminary settlement?

Justice Andrea Masley of a New York state court in Manhattan approved the preliminary settlement.

What allegations were made against the Credit Suisse executives?

Shareholders claimed that the defendants' negligence violated Swiss law, leaving Credit Suisse vulnerable to significant losses.

Which organization led the shareholder claims against Credit Suisse?

The Employees Retirement System for the City of Providence, Rhode Island, led the shareholder claims.

What legal challenges does UBS face related to Credit Suisse?

UBS must face two lawsuits by former Credit Suisse shareholders and bondholders who allege they were defrauded by false statements.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Credit Suisse ex-officials reach $115 million settlement over risk management

Finance

Credit Suisse ex-officials reach $115 million settlement over risk management

Published by Global Banking & Finance Review®

Posted on August 29, 2025

2 min read

Last updated: January 22, 2026

Credit Suisse ex-officials reach $115 million settlement over risk management - Finance news and analysis from Global Banking & Finance Review

Credit Suisse Executives Settle for $115 Million Over Risk Mismanagement

By Jonathan Stempel

NEW YORK (Reuters) -Nineteen former Credit Suisse executives and directors reached a $115 million settlement of shareholder claims that their poor risk management caused significant losses in 2020 and 2021, including from Archegos Capital Management, heralding the bank's demise.

A preliminary settlement of the shareholder derivative lawsuit was approved on Thursday by Justice Andrea Masley of a New York state court in Manhattan.

Insurers for the defendants would pay the settlement funds, after deducting legal fees, to Swiss bank UBS, which took over Credit Suisse in 2023 in a government-arranged rescue.

The defendants included former Credit Suisse Chairman Urs Rohner. All denied wrongdoing in agreeing to settle.

Lawyers for Rohner and 12 other defendants did not immediately respond to requests for comment on Friday.

Shareholders said the defendants' negligence violated Swiss law, while leaving Credit Suisse vulnerable as counterparties including Archegos, Greensill Capital Management and Malachite Capital Management defaulted.

The shareholders are led by the Employees Retirement System for the City of Providence, Rhode Island. Their lawyers plan to seek up to 30% of the settlement fund for legal fees, plus up to $3.2 million for expenses.

Last month, a federal judge in Manhattan said UBS must face two lawsuits by former Credit Suisse shareholders and bondholders who said Credit Suisse defrauded them with false and misleading statements about its financial condition.

The same judge dismissed a separate shareholder lawsuit in February 2024 against 29 former Credit Suisse officials and the auditor KPMG, blaming two decades of "continuous mismanagement" for Credit Suisse's collapse.

Archegos, a family office that once managed $36 billion, imploded in March 2021 when founder Bill Hwang could not meet margin calls on bank loans he obtained to make large bets on media and technology stocks.

Hwang is appealing his July 2024 fraud conviction and 18-year prison sentence.

The case is Employees Retirement System for the City of Providence v Rohner et al, New York State Supreme Court, New York County, No. 651657/2022.

(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)

Credit Suisse ex-officials reach $115 million settlement over risk management

Quick Summary

Credit Suisse Executives Settle for $115 Million Over Risk Mismanagement

Key Takeaways

Frequently Asked Questions about Credit Suisse ex-officials reach $115 million settlement over risk management