According to a media report, a US pension fund has filed a lawsuit against Credit Suisse’s current and former top managers in New York court. They want to hold bankers accountable for the collapse of the Archicos Hedge Fund.
As announced by the Bloomberg News Agency on Friday evening, Rhode Island City of Providence Pension Fund has sued a dozen CS executives in connection with the Archegos scandal. In a lawsuit filed Tuesday, CS managers accused the hedge fund of failing to manage risk in the business through Archegos Capital Management, which later collapsed.
Twenty current and former CS top executives were indicted
As Bloomberg continues to write, the lawsuit was filed against much of the current management, including the former chairman of the board of directors, the head of risk and the chairman of the investment bank. “Employees’ pension organization v. Providence City v. Urs Rohner at al. Or Roche CEO (and CS board member) Severin Schwan (54) .A total of 20 people have been prosecuted.
Allegation that managers failed to take timely action against “negligent conduct” in the Prime Brokerage Division. The fund is said to have filed a lawsuit in New York court on behalf of all stakeholders “to repair the financial damage that may have occurred to the bank as a result of suspicious misconduct.”
Compensation was sought
Rhode Island Finance, on behalf of the investors, is required to declare compensation and the defendants have breached their trust obligations to Credit Suisse. A CS spokesman declined to comment on the report at the request of the AWP news agency on Friday evening.
Following the collapse of the controversial investor Phil Hwang’s Archicos in March 2021, many global banks and investors suffered billions of dollars in losses. Credit Suisse was hit hard, with a loss of about five billion francs last year. (SDA / vof)
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