The law firm representing a group of Credit Suisse AT1 bondholders has been instructed to recover their losses from UBS.
Quinn Emanuel Urquhart & Sullivan's teams are in discussion with the Swiss authorities over potential litigation to recoup their clients' investments, after the Swiss regulator wiped out $17bn worth of AT1s to ease the Credit Suisse-UBS merger.
Swiss regulator FINMA backed the controversial decision, but the move was softly criticised by both the European Central Bank and Bank of England, which reiterated bondholders should only bear losses once equity holders have been fully wiped out.
Credit Suisse takeover sparks calls for legal challenges
Thomas Werlen, managing partner of the law firm's Swiss operation, said there is still a chance the various players within the Credit Suisse rescue mission will "recognise and correct the mistakes made in hastily orchestrating this merger".
He added: "While we are certainly prepared to pursue whatever proceedings are necessary, a potential constructive engagement with the relevant stakeholders could prevent years of litigation.
"That will be an important focus for us over the coming weeks."
Although Quinn Emanuel cannot represent every bondholder, Werlen said the law firm has set up a website where all affected investors can find updates, key documents and releases on the matter.
