A U.S. judge has turned down the request by Credit Suisse to disallow a lawsuit by some of its shareholders, according to a report by «Reuters». Investors lost money when the bank took writedowns worth $4.3 billion in 2016, which prompted the share price to dive.

«Misleading Investors»

The plaintiffs, which include several U.S. pension plans, can now pursue their claim that leading bank managers had misled investors saying the bank had comprehensive risk controls and binding limits on its exposure to risky and illiquid debt, «Reuters» said.

Credit Suisse had argued that the emission prospect had lived up to requirements, which rendered liability claims invalid.

Credit Suisse Feels Vindicated

The bank also said that the management of CEO Tidjane Thiam had no idea about the size of the illiquid investments that prompted the writedowns.

The bank also said that the judge had actually rejected a great part of the accusations leveled at the company, and thus confirmed the view of Credit Suisse. It added that it had strong legal and factual argument to disprove the remaining accusations.