AllianceBernstein, a U.S. asset manager, is planning to sue Switzerland for $225 million due to UBS's acquisition of Credit Suisse resulting in the erasure of $17 billion in debt.

This lawsuit is in addition to a case already initiated by law firm Quinn Emanuel Urquhart & Sullivan on behalf of Credit Suisse bondholders. The lawsuit is a response to the Swiss regulator FINMA's decision to write down approximately $17 billion of Credit Suisse's Additional Tier 1 (AT1) bonds, which has caused significant backlash among bondholders.

Previously, a group of bondholders holding $82 million in AT1 debt had already sought compensation from the Swiss government. The collapse of Credit Suisse in 2023 and its subsequent takeover by UBS were part of a rescue operation led by Swiss authorities, which has raised concerns and dissatisfaction among investors.