UBS Stuck With Securities Claims Over Credit Suisse Bond Wipeout

Hedge fund Appaloosa LP can proceed with securities fraud claims over Credit Suisse Group AG bonds written down to zero during the bank’s collapse and acquisition by UBS Group AG, a federal court ruled.

Appaloosa and two funds it manages and advises, Palomino Master Ltd. and Azteca Partners LLC, adequately alleged their purchases were “domestic” and therefore within the reach of US securities laws, Judge Colleen McMahon said. But in her opinion, docketed March 27 in the US District Court for the Southern District of New York, she said the firms failed to sufficiently plead racketeering claims under New ...