Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against Credit Suisse Group AG
NEW YORK, April 20, 2021 / PRNewswire / – Bernstein Liebhard, a nationally recognized investor rights law firm, announces that a class action lawsuit has been filed on behalf of investors who have bought or acquired the securities of Credit Suisse Group AG (“Credit Suisse” or the “Company”) “) (NYSE: CS) from October 29, 2020 to March 31, 2021 (the “Class Period”). The lawsuit has been filed The United States District Court for the Southern District of new York alleges violations of the Securities Exchange Act of 1934.
If you have purchased Credit Suisse securities and / or would like to discuss your legal rights and options, please visit or contact the Credit Suisse Shareholders’ Class Action Action Matthew E. Guarnero toll free at (877) 779-1414 or [email protected]
The complaint alleges that the following facts were known to the Defendants or were ruthlessly disregarded by the Defendants but hidden from the investing public during the class period: (i) Credit Suisse’s blending of lending, asset management and private asset management functions; and rash aggressive pursuit The fees had severely affected the company’s ability to properly assess and manage its own risk to high risk customers and potential customer loss liabilities. (ii) Credit Suisse had ignored numerous red flags in connection with the Greensill funds and overridden concerns of the company’s internal credit structuring team in packaging and selling billions of dollars’ worth of Greensill-linked securities. (iii) Credit Suisse had conspired with Sung Kook (aka Bill) Hwang Allow Archegos to covertly acquire billions of dollars in overly concentrated and risky positions using highly leveraged total return swaps, thereby transferring the risk of loss associated with those positions to Credit Suisse and its investors; (iv) Credit Suisse underestimated its risk and thus overestimated its core capital ratios in public statements. and (v) Credit Suisse’s internal controls were inadequate to ensure that the Company’s potential liability to clients and losses arising from client losses were properly accounted for, managed and disclosed to investors.
On March 1, 2021Credit Suisse suddenly froze $ 10 billion in funds invested in Greensill’s financial products and held by the supply chain mutual funds. On March 8, 2021, Greensill filed for bankruptcy protection. By March 10, 2021The Financial Times reported that the collapse of Greensill exposed Credit Suisse to potential billions in liability.
As the market digested this news, the price of Credit Suisse’s American Suository Receipts (“ADRs”) collapsed after close of trading $ 14.70 by ADR March 1, 2021 to only $ 12.85 per ADR according to market proximity March 12, 2021with unusually high volumes, a decrease of almost 13%.
On March 30, 2021, S&P Global Ratings downgraded Credit Suisse corporate debt from stable to negative and stated in a press release that “[i]In our view, there is a significant risk that clarifying the reasons for a potential material loss in connection with an individual client will reveal deficiencies in the Credit Suisse Group’s risk management system or a risk appetite that does not correspond to the current ratings. Then further March 31, 2021 The Wall Street Journal reported that Credit Suisse “had a 12.9% core capital buffer at year-end” and “[i]f is the Archegos hit $ 4 billionthis rate could fall by around 1 percentage point well below the lender’s targeted minimum of 12.5%. “
The market price of Credit Suisse ADRs fell another nearly 20% in the news and was lower than the close of trading $ 13.21 by ADR March 25, 2021 to close at $ 10.60 by ADR March 31, 2021at unusually high volume.
If you want to appear as the lead plaintiff, you must move the court at the latest June 15, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the dispute. Your ability to partake in a recovery does not require you to be the lead plaintiff. If you don’t take action, you may remain an absent class member.
If you have purchased Credit Suisse securities and / or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/creditsuissegroupag-cs-shareholder-class-action-lawsuit-fraud-stock- 392 / apply / or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected]
Bernstein Liebhard LLP has been recovering since 1993 $ 3.5 billion for its customers. In addition to representing individual investors, the firm has been hired by some of the country’s largest public and private pension funds to oversee their assets and litigate on their behalf. Because of its litigation success with hundreds of lawsuits and class actions, the firm has been featured on the National Law Journal’s Hot List thirteen times and on The Legal 500 for ten consecutive years.
LAWYER. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779- 1414. The lawyer responsible for this complaint in the State of Connecticut is Michael S. Bigin. Past results do not guarantee or forecast a similar result with respect to future matters.
Matthew E. Guarnero
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP