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The Swiss Investor Protection Association has filed a lawsuit against the exchange ratio of shares in the acquisition of Credit Suisse. The buyer, UBS, has been granted more time to respond to the lawsuit. Originally, UBS had until December 15th to respond to the class action lawsuit filed by the Swiss Investor Protection Association (SASV). However, the Zurich Commercial Court has approved an extension, according to a circular sent by the association on Tuesday.
UBS is now required to submit its response to the lawsuit to the Commercial Court by January 10, 2024. After that, the court will forward the documents to the SASV’s legal representative.
The request for an extension was justified by UBS due to an additional workload caused by subsequently submitted applications, which were not taken into account in the original deadline.
The SASV’s lawsuit aims to judicially review the exchange ratio in the acquisition of Credit Suisse (CS). In August, it was reported that more than 500 shareholders had joined the lawsuit.
The CS shareholders received one UBS share for every 22.48 CS shares in the acquisition. Based on the UBS closing price on Friday, March 17, 2023, of 17.11 Swiss francs, the price set in the merger agreement on March 19, 2023, amounted to 76 cents per CS share. The last CS closing price before the acquisition was 1.86 Swiss francs, and the book value as of March 31, 2023, was 13.70 Swiss francs per share.