US Appeals Court Dismisses Lawsuit Against Switzerland Over Credit Suisse AT1 Bonds

11:42 AM EDT, 07/28/2026 (MT Newswires) -- A US district court in New York dismissed a lawsuit against Switzerland related to a legal dispute over the write-down of Credit Suisse's outstanding additional tier 1 bonds as part of UBS Group's (UBSG.SW) takeover of the collapsed lender. The appeals court upheld the lower court's ruling that Switzerland acted in its capacity as a sovereign state when the AT1 bonds were written down rather than as a market participant, Finews.com and Swiss daily Aargauer Zeitung reported Thursday. As such, the country has sovereign immunity and US courts lack jurisdiction over the plaintiffs' claim. The lawsuit was filed by plaintiffs seeking $370 million in damages.