UBS has been seeking to draw a line under a number of outstanding issues accompanying its emergency purchase of Credit Suisse in 2023.

UBS has reportedly reached a $115 million settlement in the US surrounding a derivative action related to its merger with Credit Suisse. 

A legal case alleged that former Credit Suisse directors and executives did not establish effective risk management systems, leading to significant financial losses.

The settlement is subject to court approval.

Bloomberg reported on 29 August that “a group of former Credit Suisse Group AG executives and directors led by ex-chairman Urs Rohner agreed to pay $115 million to settle a shareholder suit alleging they failed to maintain adequate risk management, resulting in losses between 2020 and 2021.”

“We are pleased that this long-running litigation has been resolved by settlement," UBS told WealthBriefing in an emailed comment.

The settlement was preliminarily approved by a New York judge on 28 August. The amount will be paid to UBS as the successor to Credit Suisse and will be funded by the insurers of the directors and officers, according to court documents shared by UBS on its own website on 29 August.

Zurich-listed UBS has been wrapping up a number of outstanding issues that came with the Credit Suisse business it bought in an emergency deal in March 2023 at the behest of the Swiss federal authorities.