Credit Suisse Bondholders Face Uphill Battle After US Court Ruling

A New York court just blocked a major lawsuit against Switzerland—leaving bondholders with few options. Will Finma’s controversial ruling stand unchallenged?

, and Administrator

2025 November 10 . 1:15 AM

1 min read

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Credit Suisse Bondholders Face Uphill Battle After US Court Ruling

In recent weeks, there has been no legal challenge from US institutions regarding the write-down of Credit Suisse’s Additional Tier 1 (AT1) bonds following the UBS takeover. Meanwhile, investors affected by the Finma order in March 2023 still have time to appeal the ruling. A US court in New York has already dismissed a similar claim, citing sovereign immunity.

The search for legal appeals from US institutions in the past 30 days has yielded no results. This comes after the Swiss Financial Market Supervisory Authority (Finma) ordered the write-down of Credit Suisse’s AT1 bonds as part of the UBS takeover deal. The affected investors, who consider themselves expropriated, still have until the end of this month to appeal the Finma order.

Recently, a US court in New York dismissed a claim filed by international investors against Switzerland. The court ruled that the Swiss Confederation is not subject to US jurisdiction in this matter, thanks to the principle of sovereign immunity. This decision may influence future legal actions involving the Credit Suisse AT1 bond write-down.

While no US legal appeals have been found regarding the Credit Suisse AT1 bond write-down, the affected investors still have time to appeal the Finma order. A US court has already dismissed a similar claim, setting a precedent that may impact future legal actions in this matter.