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STMicroelectronics, N.V. won a record victory on February 12, in an arbitration against Credit Suisse Securities (USA) LLC. ST is one of the world’s largest manufacturers of semiconductors and Credit Suisse Securities is the U.S. subsidiary of Credit Suisse Group, Switzerland's second largest bank.
A FINRA panel ruled that the bank must pay over $431 million to resolve claims that Credit Suisse placed hundreds of millions of dollars of ST's cash into risky unauthorized auction-rate securities, rather than in student-loan securities that ST had instructed the bank to buy. In addition to compensatory damages, FINRA ordered Credit Suisse to pay attorney's fees, consequential damages, and interest through the date of payment of the award, as well as assessed all costs against Credit Suisse.
The arbitration award generated significant media attention, including reports by the Wall Street Journal, New York Times, Bloomberg, and Reuters.
The Jenner & Block team was led by Andrew Weissmann, Co-Chair of Jenner & Block’s White Collar Criminal Defense and Counseling Practice, Matthew W. Alsdorf, Elisabeth Genn, Joseph J. McFadden, David A. Newman, and law clerk Elizabeth A. Edmondson.
Please click here to view the award on the FINRA website.