AllianceBernstein, a U.S. asset manager, is planning to sue Switzerland for $225 million due to the $17 billion debt write-off of Credit Suisse during UBS's acquisition of the failed bank last year.

The lawsuit is part of a case initiated by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders. Swiss regulator FINMA's decision to write down approximately $17 billion of Credit Suisse's Additional Tier 1 (AT1) debt has faced backlash from bondholders.

Earlier this year, a group of bondholders holding $82 million in AT1 debt also sought compensation from the Swiss government. The collapse of Credit Suisse in 2023 and its subsequent acquisition by UBS was orchestrated by Swiss authorities to stabilize the financial system.