Credit Suisse settles National Century Financial bonds case
ZURICH (Reuters) - Credit Suisse (CSGN.VX) said on Thursday it settled a lawsuit with bond investors in National Century Financial Enterprises, which went bankrupt in 2002.
The settlement shaves 134 million Swiss francs ($141 million) off its fourth-quarter net profit, which the Swiss bank had already reported, cutting it to 263 million francs from 397 million.
"This agreement represents a full and final settlement in respect of this noteholder litigation against Credit Suisse," Credit Suisse said in a statement.
The bank was sued for fraud and conspiracy by the state of Arizona, AllianceBernstein Holding LP (AB.N), Lloyds TSB Bank Plc (48IY.L), MetLife Inc (MET.N), Allianz SE's (ALVG.DE) investment management group Pimco and other investors that bought National Century bonds from 1998 to 2002.
The settlement comes after the bank in January lost its bid to be tried separately from convicted National Century Financial Enterprises Inc co-founder Lance Poulsen in an upcoming $2 billion civil trial alleging fraud at the healthcare financier a decade ago.
The bondholders had said Credit Suisse sold the notes and defended their creditworthiness despite knowing that National Century misused investor funds and while missing red flags that Poulsen had been masterminding a $2.9 billion fraud.
(Reporting By Katharina Bart; Editing by Greg Mahlich)
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