Credit Suisse on Wednesday lost its $440 million London lawsuit against Japan’s SoftBank Group Corp over losses linked to collapsed finance firm Greensill Capital.
Greensill’s collapse made Credit Suisse close $10 billion of funds linked to the financial firm and, along with other scandals, led to the 2023 state-backed rescue of the 167-year-old Swiss bank by rival UBS Group.
UBS pursued the case against SoftBank, with a trial heard at London’s High Court in June. Judge Robert Miles said in a written ruling that he had dismissed the lawsuit.
The case, which centred on funds Greensill lent to Katerra, a SoftBank-backed U.S. construction group, was the latest concerning Greensill’s demise, which caused heavy losses for investors and prompted lawsuits and regulatory probes.
Credit Suisse alleged that Greensill, at SoftBank’s behest, gave up rights to Katerra’s debts in return for shares which it then passed on to a SoftBank Group entity, leaving Credit Suisse out of pocket in relation to $440 million of notes.
But Miles said in a summary of his ruling that SoftBank “believed in good faith” that the $440 million would be used to pay noteholders.
A SoftBank spokesperson said the ruling “fully vindicates SoftBank and confirms the allegations were simply a baseless attempt to redirect blame”.
A UBS spokesperson said: “We acknowledge the court’s decision in this legacy matter.
“The CS Fund is reviewing the judgment and evaluating next steps. We remain committed to taking all appropriate actions to maximize recovery for the benefit of all stakeholders.”
Lawyers representing Greensill Limited did not immediately comment.
Reuters
