Credit Suisse Hit With Suit Over Subprime Loans

Law360, New York (May 1, 2007, 12:00 AM EDT) -- A Florida insurance company has filed a lawsuit against Credit Suisse Group, alleging that the investment bank did not disclose the risks involved with the purchase of bonds backed by subprime mortgages.

Bankers Life Insurance filed the suit last week in a Florida district court in hopes of recovering $1.3 million in losses incurred on $1.4 million worth of bonds purchased from Credit Suisse in 2004.

Credit Suisse allegedly withheld the Moody’s rating of the bonds in order to entice buyers into purchasing. The insurance company...
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