Credit Suisse Units, KPMG Avoid RICO Lawsuits in Federal Court

Two would-be racketeering class actions against former Swiss bank Credit Suisse Group AG ‘s subsidiaries and leadership, along with auditor KPMG LLP, were dismissed by a federal court.

The shareholder claims must be dismissed because they didn’t allege facts showing a racketeering “enterprise” existed among the defendants or that KPMG engaged in a “predicate act” supporting a RICO violation, Judge Colleen McMahon said in an opinion docketed Thursday in the US District Court for the Southern District of New York. Four of Credit Suisse’s US subsidiaries and 29 of its executives and directors were named among the defendants.

The ...