Ex-Credit Suisse executives to pay UBS Group $115 million to settle risk suit

Credit Suisse shareholders had claimed that former chairman Urs Rohner and others failed at risk management, resulting in losses between 2020 and 2021.

A group of former Credit Suisse Group AG executives and directors, including former chairman Urs Rohner, agreed to pay $115 million to settle a suit filed by shareholders who claim they failed to maintain adequate risk management, resulting in losses between 2020 and 2021.

The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland. (REUTERS)

The settlement, which was preliminarily approved by a New York judge on Thursday, will be paid to UBS Group AG, as the successor to Credit Suisse and will be funded by the insurers of the directors and officers, according to court documents.

The shareholders, led by the Employees Retirement System for the City of Providence, claimed the risk management failures let to losses when multiple counterparties defaulted, including Malachite Capital Management, Greensill Capital Management and Archegos Capital Management.