The US Court of Appeals has confirmed that Switzerland acted in its sovereign capacity when it ordered the write-down of Credit Suisse's AT1 bonds during the emergency takeover by UBS. As a result, the appeal against the lower court's ruling has been dismissed.
U.S. judges confirmed Switzerland's role in the spring of 2023. (Image: Shutterstock)
Tuesday, 28 July 2026 14:01
In the legal dispute over the write-down of Credit Suisse's AT1 bonds during the UBS takeover, the plaintiffs sought damages of 370 million dollars. Last autumn, a US District Court in New York dismissed the claim at first instance. The recently published appellate ruling was first reported by the Swiss newspaper Aargauer Zeitung.
According to the Court of Appeals, Switzerland did not act as a market participant when it ordered the controversial write-down of the outstanding AT1 bonds, but rather in its capacity as a sovereign state. Switzerland therefore enjoys sovereign immunity and is not subject to the jurisdiction of US courts.
