Credit Suisse Sued For Alleged ARS Fraud

Law360, New York (August 7, 2008, 12:00 AM EDT) -- Swiss semiconductor company STMicroelectronics NV has hit Credit Suisse Group with a lawsuit alleging the financial firm's brokers fraudulently invested $450 million of the company's funds into unauthorized auction rate securities as part of a multibillion-dollar scheme involving more than a dozen of its customers.

In a complaint filed Wednesday in the U.S. District Court for the Eastern District of New York, STM alleges Credit Suisse Securities LLC, a wholly owned subsidiary of Credit Suisse Group, illegally invested company funds in risky auction rate securities although...
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