Credit Suisse Fails to Get Fraud Case Dismissed

A state-level appeals court has rejected an effort by Credit Suisse AG to dismiss a $10 billion lawsuit brought by New York Attorney General Eric Schneiderman that charged the Swiss bank with fraudulent activities related to the sale of its pre-2008 mortgage-backed securities.

According to a Bloomberg report, Schneiderman brought the lawsuit in 2012, but a majority decision by the five-member New York-based court rejected the bank’s claims that a three-year statute of limitations applied to the case. The bank had previously sought a dismissal of the case in December 2014, but that was rejected by the New York State Supreme Court.

"We’re pleased with the appellate court’s decision, which recognizes that a six-year statute of limitations applies to our statutory fraud claims," said Amy Spitalnick, a spokeswoman for Schneiderman. Credit Suisse offered no comment on the ruling.