A US district court has dismissed an investor lawsuit against Switzerland linked to the 2023 implosion of Credit Suisse bank, the finance ministry in Bern announced Wednesday.
The court in New York dismissed the civil action brought by a group of bondholders, who were seeking $370 million in damages.
To facilitate the takeover of Switzerland鈥檚 second-biggest bank by its bigger domestic rival UBS, the country鈥檚 financial regulator FINMA wrote down the value of 16 billion Swiss francs ($20 billion) of so-called additional tier 1 (AT1) bonds to zero.
The order infuriated bondholders, who are typically better protected than shareholders.
UBS bought out Credit Suisse for $3.25 billion in March 2023 under strong pressure from FINMA, the government and the central bank.
This decision triggered a wave of lawsuits, including one in a New York court filed against Switzerland.
鈥楽everal international investors had filed lawsuits to recover losses associated with the AT1 bonds,鈥� the Swiss finance ministry said in a statement.
鈥業n its decision of September 30, 2025, the competent court in New York followed the arguments of the Swiss Confederation and confirmed that, due to sovereign immunity, the Swiss Confederation is not subject to US jurisdiction in this matter.鈥�
In the New York Southern District Court鈥檚 decision, seen by AFP, the complaint was 鈥榙ismissed with prejudice for lack of subject matter jurisdiction鈥�.
The decision can be taken to a court of appeal within 30 days.
The quickfire 2023 takeover of Credit Suisse sent shockwaves throughout Switzerland.
To facilitate the transaction, exceptional measures were put in place, including the depreciation of AT1 bonds, which are primarily held by professional investors, such
as Swiss and international pension funds.
Since the takeover, Switzerland has sought to tighten its banking rules, drawing lessons from the Credit Suisse rescue.
The government and UBS, however, are at odds over capital requirements.
Given the size of UBS in the Swiss economy following the mega-merger, the government is demanding that the bank set aside some $24 billion in additional reserves.
But UBS has warned that tightening the regulations too much could put it at a disadvantage with its foreign competitors.
