Stichting Pensioenfonds ABP, Heerlen, Netherlands, sued Credit Suisse Group AG in New York state court over losses on investments in mortgage securities.
Credit Suisse sold securities that were backed by low-quality loans and turned out to be “far riskier” than promised, ABP said in a complaint filed Thursday in Manhattan.
The pension fund said Credit Suisse knew of “the wholesale and systematic abandonment” of underwriting guidelines by loan originators, leading to high default and delinquency rates by borrowers.
ABP said it has suffered “substantial losses” on the securities and that it's increasingly probable that it would not obtain the full payments it expected.
A lawyer for the €242 billion ($323.5 billion) pension fund couldn't be reached for comment about the amount of securities at issue in the lawsuit.
Steven Vames, a spokesman for Credit Suisse, declined to immediately comment.
Earlier this month, ABP sued J.P. Morgan Chase & Co., alleging violations of securities laws and fraud involving sales of residential mortgage-backed securities. And in September, the pension fund also sued Deutsche Bank over similar allegations.