As previously informed, our firm is preparing to file an arbitration against the Swiss Confederation on behalf of Japanese investors who hold Credit Suisse AT1 bonds. We have recently become aware of information that we believe to be highly favorable to investors.

On October 1, 2025, the Swiss Federal Administrative Court (FAC) rendered a judgment in one of the cases filed by holders of Credit Suisse AT1 bonds, ruling that the order issued by the Swiss Financial Market Supervisory Authority (FINMA) on March 19, 2023, requiring the total write-down of the AT1 bonds, was unlawful. 
Unlawful write-off of AT1 capital instruments

The key findings of the court are as follows:

• There was no contractual or legal basis for the write-down.
• Credit Suisse had sufficient capital, and no contractual “Viability Event” had occurred.
• The provisions of the Emergency Ordinance relied upon by FINMA constituted an infringement of property rights and were unconstitutional.

Although this judgment may still be appealed to the Swiss Federal Supreme Court and is therefore not yet final, it fully supports the arguments we intend to advance in the forthcoming arbitration.

Please note that, as the judgment does not in itself reverse the write-down of the AT1 bonds, the bonds have not regained their value and investors therefore remain in a loss position. The court further observed that a state-liability claim against the Swiss Confederation would be the appropriate remedy. Accordingly, our firm continues to consider it necessary to pursue a damages claim against the Swiss government through international arbitration. (In addition, Japanese investors are no longer able to bring court proceedings within Switzerland, as the relevant filing deadline has already passed.)

Taking this judgment into account, we intend to incorporate its reasoning into our pleadings and proceed to file the arbitration in November.

Finally, with respect to investors who have pursued damages claims against financial institutions, our firm requires such claims to be withdrawn upon engagement with us. We believe that this new judgment may diminish the prospects of success for those domestic damages claims.

Should you have any questions, please do not hesitate to contact us at the address below.

Mori Hamada & Matsumoto, AT1 Bonds International Arbitration Team
mhm_at1@morihamada.com