A group of former Credit Suisse Group AG executives and directors, including former chairman Urs Rohner, agreed to pay $115 million to settle a suit filed by shareholders who claim they failed to maintain adequate risk management, resulting in losses between 2020 and 2021.
Related: UBS Must Face US Investor Litigation Over Credit Suisse Demise
The settlement, which was preliminarily approved by a New York judge on Thursday, will be paid to UBS Group AG, as the successor to Credit Suisse and will be funded by the insurers of the directors and officers, according to court documents.
Related: UBS Pays $300 Million to Settle Credit Suisse Mortgage Case
The shareholders, led by the Employees Retirement System for the City of Providence, claimed the risk management failures let to losses when multiple counterparties defaulted, including Malachite Capital Management, Greensill Capital Management and Archegos Capital Management.
Top photo: A pedestrian walks past the logo of Credit Suisse in Hong Kong, China, on Friday, Mar. 17, 2023. Photographer: Lam Yik/Bloomberg.
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