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US court orders in favor of STMicroelectronics

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CIOL Bureau
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PARIS, FRANCE: A United States federal court has ordered Credit Suisse Group AG to pay STMicroelectronics NV the remainder of a $431-million arbitration award.

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The US court’s ruling follows the legal action to recover from Credit Suisse Group AG the amount invested in unauthorised auction rate securities against the company’s instructions.

The Financial Industry Regulatory Authority had ordered the award in 2009. 

In a statement, STMicroelectronics NV said that that the ruling of the US Federal District Court in New York rejected Credit Suisse Group’s motion to vacate the award. The federal court also granted STMicroelectronics’ petition to affirm the award and ordered Credit Suisse to pay STMicroelectronics the unpaid balance.

STMicroelectronics explained that, based on the US federal court’s ruling, it will receive around $354 million – including about $23 million by way of interest. This amount adds to the $75 million that STMicroelectronics had obtained in December 2009 by selling a portion of these securities.

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