MUFG’s unit sued again in Japan for Credit Suisse AT1 losses
This comes after the group’s flagship banking unit was penalised for iolating client confidentiality rules
MORE investors in Japan are suing Mitsubishi UFJ Financial Group’s brokerage unit, after the Japanese broker sold to its clients Credit Suisse bonds, which were eventually written down by Switzerland’s regulator.
A lawsuit representing 14 plaintiffs was submitted to the Tokyo District Court on Friday (Jun 28), seeking to recover losses from so-called Additional Tier 1 (AT1) notes that they bought from Mitsubishi UFJ Morgan Stanley Securities.
They demand a combined 1.37 billion yen (S$11.6 million) in compensation, according to the filing led by Yamazaki Marunouchi Law Office.
A representative of the securities firm, a joint venture between Japan’s largest lender and the major US investment bank, was not immediately able to comment.
The move marks the third group litigation filed by the same law firm against the brokerage, and reflects investor sentiment, after US$17 billion worth of the notes were wiped out in the March 2023 state-led rescue of Credit Suisse.
Some investors recently sued the Swiss government in New York, while hedge fund Appaloosa has brought a case against Credit Suisse, now taken over by UBS Group AG. BLOOMBERG
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