Roche sues Credit Suisse over securities
Pharma giant Roche is suing Credit Suisse for selling them USD 545 million of risky securities.Zurich -- Swiss pharmaceutical giant Roche is suing Credit Suisse for having sold the company USD 545 million (CHF 550 million, EUR 364 million) worth of risky securities, a Swiss newspaper reported Tuesday.
"We confirm this ongoing case between Roche and Credit Suisse concerning certain securities transactions," a Roche spokesman said, confirming the report in Swiss newspaper Le Temps, but declining to elaborate.
A Credit Suisse spokesman also confirmed Roche's complaint, adding that the bank would "vigourously defend" itself.
According to Le Temps, Roche brought the case on Thursday to the New York federal court, accusing the Swiss bank of selling it risky auction-rate securities instead of guaranteed student loan securities.
Credit Suisse lost a similar case earlier in 2009 against semi-conductor maker ST Microelectronics. In February, it was ordered by a Swiss regulator to pay the company USD 406 million.
Credit Suisse filed an appeal against the ruling.
Auction-rate securities, which are bonds whose rate is set by auction, were similar to cash before the market for the instruments began to collapse in 2008 amid the credit crisis.
Credit Suisse's spokesman said the bank reserved CHF 766 million to manage any complaints linked to such securities.
AFP / Expatica