Credit Suisse formally filed its $440m lawsuit against SoftBank earlier this month as it seeks to claim back funds which were locked in Greensill Capital when it collapsed in 2021.
The legal action is the first since it was taken over by UBS last month. The bank said it “continues to prioritise maximising recovery for investors in the supply chain finance funds.”
The embattled Swiss lender is looking to recover $440m of funds that Greensill had lent to a now-defunct finance firm Katerra, which was backed by SoftBank.
In 2020 SoftBank injected emergency cash into Katerra to cover its debts, including to Credit Suisse. However, it has been reported that the funds never reached the bank.
The lawsuit, filed in London’s High Court, marks an escalation in its attempts to recover the remaining funds linked to Greensill’s collapse.
When Greensill collapsed in March 2021, Credit Suisse closed four of its funds at short notice. Close to $10bn of clients’ cash was trapped in the funds, turning it into one of Credit Suisse’s most damaging scandals.
Last month Swiss regulator Finma said the bank “seriously breached its supervisory obligations” regarding its involvement with Greensil, citing poor risk management and “serious deficiencies” in its organisational structure.
Finma has opened enforcement proceedings against four former Credit Suisse managers.
Credit Suisse’s attempts to recoup investor funds relating to Greensill is one of many legal battles the lender is currently involved in.
On Thursday, the bank will have to defend itself against a $160m claim that it made “fraudulent misrepresentations” relating to the sale of mortgage-backed securities back in 2007.
When it was taken over last month, UBS sought a loss guarantee of up to $9bn in case the legal costs tipped Credit Suisse
SoftBank was contacted for comment. In a statement to other news organisations it said “after more than two years of attempting to shift blame for its own poor investment decisions, Credit Suisse has finally made a claim — but, as expected, it is entirely without merit and will be defended vigorously.”