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.

«US Courts Lack Jurisdiction»

The Swiss Federal Department of Finance (FDF) said it was «pleased with the ruling» and is currently analysing the decision, a spokesperson told the AWP news agency. «The court has confirmed the view that US courts do not have jurisdiction to adjudicate such a claim.»

The write-down ordered by the Swiss Financial Market Supervisory Authority (Finma) has led to several legal proceedings in Switzerland and abroad. In Switzerland, the Federal Administrative Court overturned the write-down of the AT1 bonds in a partial ruling in October 2025 following appeals by around 3'600 affected investors.

Finma and UBS subsequently appealed that decision to the Swiss Federal Supreme Court. Pending the court's ruling, all related proceedings before the lower court have been suspended.

Arbitration Proceedings Abroad

At the same time, «individual arbitration proceedings» based on bilateral investment protection agreements are still pending abroad, the FDF confirmed. For example, a group of Japanese investors filed a claim against Switzerland with the International Centre for Settlement of Investment Disputes (ICSID) at the end of 2025.