PARIS, March 24 (Reuters) - Swiss-based chipmaker STMicroelectronics on Wednesday said a U.S. court had affirmed a $431 million arbitration award against Credit Suisse for investing outside its mandate.
The Swiss bank said it would appeal and said it had found an amicable settlement in a similar case with Roche in January.
The dispute between the firms was about loss-making investments that STM says were made by the bank outside the risk profile agreed for the investments.
U.S. District Judge Deborah Batts in New York affirmed a February 2009 arbitration by financial industry regulatory authority FINRA about what STM called investments in 'unauthorized auction rate securities against company instructions.'
Credit Suisse said, however, that it would appeal and that in any case it would only have to pay $354 million. STM said it had already received some $75 million in December.
'We respectfully disagree with the court's decision and are evaluating an appeal,' Credit Suisse said in a statement.
STM was the biggest gainer among Paris blue-chips, rising 4.3 percent to 7.198 euros, its highest level since October.
The case is: ST Microelectronics NV v. Credit Suisse Securities (USA) LLC, U.S. District Court, Southern District of New York, No. 09-01388.
(Reporting by Alexandre Boksenbaum-Granier; Editing by James Regan, Leslie Gevirtz) Keywords: STM/ (marcel.michelson@thomsonreuters.com; +33 1 4949 5130; Reuters Messaging: marcel.michelson.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Swiss bank said it would appeal and said it had found an amicable settlement in a similar case with Roche in January.
The dispute between the firms was about loss-making investments that STM says were made by the bank outside the risk profile agreed for the investments.
U.S. District Judge Deborah Batts in New York affirmed a February 2009 arbitration by financial industry regulatory authority FINRA about what STM called investments in 'unauthorized auction rate securities against company instructions.'
Credit Suisse said, however, that it would appeal and that in any case it would only have to pay $354 million. STM said it had already received some $75 million in December.
'We respectfully disagree with the court's decision and are evaluating an appeal,' Credit Suisse said in a statement.
STM was the biggest gainer among Paris blue-chips, rising 4.3 percent to 7.198 euros, its highest level since October.
The case is: ST Microelectronics NV v. Credit Suisse Securities (USA) LLC, U.S. District Court, Southern District of New York, No. 09-01388.
(Reporting by Alexandre Boksenbaum-Granier; Editing by James Regan, Leslie Gevirtz) Keywords: STM/ (marcel.michelson@thomsonreuters.com; +33 1 4949 5130; Reuters Messaging: marcel.michelson.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.