Jody Godoy

(Reuters) – An Rhode Island pension fund sued Credit Suisse (SIX) Group AG ex-Chairman Urs Rohner, along with 19 other executives and directors, claimed that their inability to manage risk caused the bank’s primary brokerage business to collapse and lead to the fall of Archegos Capital.

This lawsuit was filed at the New York Supreme Court Tuesday to seek compensation for Archegos, which suffered a loss of $5.5 billion during the Archegos meltdown.

The City of Providence Employees Retirement System claimed that officers and directors had been negligent under Swiss law. Their failures made Archegos vulnerable to implosion a year earlier.

The retirement fund stated that the main problem was that CS’s board didn’t have the people, technology and resources to understand the risk that the bank took on.

Credit Suisse refused to comment Friday on the suit.

Archegos had assets of $36 Billion and collapsed when it was exposed to high-leverage trades.

This scandal triggered a stock fire sale, including ViacomCBS and Discovery (NASDAQ) Inc. Credit Suisse was also affected. Nomura Holdings (NYSE:) Lenders to Lose Billions on Trades With Archegos

After being accused of fraud and racketeering in relation to lying to banks regarding the holdings of Archegos’ Chief Financial Officer Patrick Halligan and Archegos founder Bill Hwang, Patrick Halligan was released on Wednesday on bail. Hwang was also accused of stock manipulation. Both Hwang and Ha pleaded guilty to these charges.