The Strategist

Investors prepare class action lawsuits against Credit Suisse over Greensill bankruptcy

03/23/2021 - 03:01

Investors who once invested in Credit Suisse funds used for the operations of bankrupt start-up Greensill are preparing class action lawsuits against the Swiss bank. According to the Financial Times, the investors accuse Credit Suisse of misleading them.

Plaza Financiera via flickr
Plaza Financiera via flickr
The bank advertised the aforementioned funds to its clients as some of the safest to invest in. In total, the funds ended up being worth $10bn. 

However, on March 8, Greensill declared bankruptcy and filed for protection from creditors with the authorities in the UK and Australia, where the company is registered. Credit Suisse immediately promised that it would try to get the money back from investors, but so far it has only managed to recover $3bn.

The situation regarding the return of the remaining funds, the bank said, is "largely uncertain". This means, in particular, that the claimants could be the owners of most of the remaining amount. 

These include both institutional investors, who are clients of Credit Suisse, and wealthy private investors. According to the newspaper, claims against the bank are being prepared in both Switzerland and the UK.