Credit Suisse bondholders are seeking legal advice after the Swiss regulator ordered $17.5 billion of Additional Tier-1 (AT1) debt to be wiped out under its rescue takeover by UBS. Lawyers and dealmakers said the AT1s, which have dropped in value to just a few cents in the dollar following the move, are being traded by hedge funds in a so-called litigation play. Here’s a look at the potential for litigation and why it’s a big deal.
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Plaintiffs’ firms are making increasing use of websites like ClassAction.org to connect with prospective clients in class actions, mass torts and mass arbitration. So far, critics don’t seem to have given these websites as much attention as old-school TV ads by plaintiffs firms. So Alison Frankel’s attention was piqued when she noticed a motion to quash a Robinhood subpoena for information about a plaintiffs firm’s communications with ClassAction.org, including information about prospective clients that the firm, Berger Montague, opted not to use as name plaintiffs in a spam text class action against the trading platform. If Robinhood manages to squeeze secrets from the website, Frankel says, other defendants will likely follow.
Check out other recent pieces from all our columnists: Alison Frankel, Jenna Greene and Hassan Kanu
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