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Drew and Napier secure financial backing for a lawsuit against the Swiss government, alleging unjust loss from AT1 write-off.

Drew & Napier, one of Singapore's major law firms, is pushing forward with a lawsuit against Switzerland, achieving support from litigation financing company Omni Bridgeway in the process.

Drew and Napier secure financial resources to initiate legal action against the Swiss government,...
Drew and Napier secure financial resources to initiate legal action against the Swiss government, asserting a dispute over the AT1 bond elimination.

Drew and Napier secure financial backing for a lawsuit against the Swiss government, alleging unjust loss from AT1 write-off.

In a significant move, Singapore's Big Four law firm, Drew & Napier, is leading a legal challenge against the Swiss government in response to the Swiss authorities' instruction to Credit Suisse to write off an $18 billion claim of AT1 bonds following UBS' takeover of Credit Suisse last year.

The litigation, an investor-state action, is being supported by global litigation funder Omni Bridgeway, which has raised interest from over 100 investors with an aggregate claim of between $60 and $70 million. Over 120 investors in Japan with claims of around $80 million have already signed up to Drew & Napier's investor-state action, making the total aggregate claim over $200 million.

The legal challenge is being made on behalf of more than 300 investors, primarily based in Asia. Drew & Napier's dispute resolution director, Mahesh Rai, is leading the team assisting investors in the investor-state action, with associate director Jonathan Yong also part of the team.

Initially, Omni Bridgeway was working with Magic Circle firm Allen & Overy (now A&O Shearman), but A&O withdrew from acting for reasons unrelated to the merits of the claims in around late 2023. Drew & Napier is continuing to onboard interested investors, with expectations to commence its claim against the Swiss government shortly after June this year.

Investor-State Arbitration (ISDS) is a mechanism that allows foreign investors to bring claims against host states for alleged breaches of investment treaties. Recent discussions and trends in ISDS focus on balancing the rights and obligations of investors and states, as well as the use of counterclaims by states to enhance dispute resolution efficiency.

The litigation adds more pressure on the Swiss authorities, who are already facing numerous legal challenges due to UBS' $3.3 billion takeover of Credit Suisse. As the case progresses, it will be interesting to see how the Swiss government responds and how the ISDS mechanism unfolds in this context.

The investor-state action, supported by approximately $200 million in aggregate claims from over 120 investors in Japan and more than 300 investors overall, is led by Drew & Napier's dispute resolution director, Mahesh Rai, and associate director Jonathan Yong. This litigation, under the Investor-State Arbitration (ISDS) mechanism, is being pursued against the Swiss government regarding the write-off of an $18 billion claim of AT1 bonds following UBS' takeover of Credit Suisse, potentially adding more pressure on the Swiss authorities as they navigate multiple legal challenges.

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