The Swiss association for the protection of investors (SASV), which has over 1,500 sign-ups for a class action lawsuit against UBS, including several individuals from Luxembourg, announced on Tuesday 12 December that the Zurich-based commercial court has postponed UBS’s response deadline. Initially due on 15 December 2023, UBS now has until 10 January 2024. Following this, the commercial court will forward UBS’s response to SASV’s legal representatives.

SASV also informed the stakeholders of the lawsuit on Tuesday that it has secured enough financial resources to escalate the case to the Swiss federal supreme court if necessary. This move could extend the lawsuit’s duration if the investors are dissatisfied with the initial outcome.

A major issue in the lawsuit centers around the valuation of the acquisition, which was controversially and hastily conducted. UBS paid CHF3bn (€3.13bn) for the troubled Credit Suisse, a figure significantly lower than Credit Suisse’s market value, which was less than half on the last trading day before the deal’s completion and merely a fraction of its book value, according to SASV.

Importantly, the takeover, overseen by Swiss authorities, did not allow shareholders from either UBS or Credit Suisse to vote on the deal.

When contacted by Delano, UBS chose not to comment.

Note: The number of investor sign-ups for the class-action is updated on Wednesday 13 December with comment from Arik Röschke, secretary general of the Swiss association for the protection of investors (SASV).