Credit Suisse Says New York’s Fraud Suit Filed Too Late

Credit Suisse Group AG (CSGN) said the New York attorney general’s fraud lawsuit over mortgage-backed securities should be dismissed because it was filed too late.

Attorney General Eric Schneiderman’s lawsuit accusing Credit Suisse of defrauding investors wasn’t filed within a three-year statute of limitations, the Zurich-based bank said in a filing yesterday in New York state court.

“This suit is a ‘hindsight’ pleading attempt to undo the investment risks that investors knowingly chose to take,” Credit Suisse said.

Schneiderman sued Credit Suisse last year, accusing the lender of “multiple fraudulent and deceptive acts” in promoting and selling mortgage securities. The state has also sued New York-based JPMorgan Chase & Co. (JPM), which has also argued the case is time-barred.

“We are confident that our office will prevail, and that those responsible for the misconduct that led to the crash of the housing market and the collapse of the American economy will be held accountable,” Damien LaVera, a spokesman for Schneiderman, said in an e-mail.

The case is People v. Credit Suisse Securities (USA) LLC, 451802-2012, New York State Supreme Court, New York County (Manhattan).

To contact the reporters on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net; Chris Dolmetsch in New York State Supreme Court in Manhattan at cdolmetsch@bloomberg.net

To contact the editors responsible for this story: John Pickering at jpickering@bloomberg.net; Michael Hytha at mhytha@bloomberg.net

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