Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Credit Suisse Group AG (CS)
RADNOR, Pa .– (BUSINESS WIRE) – Law firm Kessler Topaz Meltzer & Check, LLP reminds investors that a class action lawsuit for securities fraud has been brought against Credit Suisse Group AG (NYSE: CS) (“Credit Suisse”) on behalf of those who have bought or acquired Credit Suisse American Depositary Receipts (“ADRs”) between October 29, 2020 and March 31, 2021 (including the “Class Period”).
Investor deadline reminder: Investors who bought or acquired ADRs from Credit Suisse during the class period can, no later than June 15, 2021try to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to firstname.lastname@example.org; or click on https://www.ktmc.com/credit-suisse-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=credit_suisse
Credit Suisse is a global financial services company based in Zurich, Switzerland. Greensill Capital (“Greensill”), which filed for bankruptcy protection on March 8, 2021, was a financial services company based in the United Kingdom and Australia that focused on the provision of supply chain finance and related services. Archegos Capital Management (“Archegos”) is a family office mutual fund operated by Sung Kook Hwang. Archegos’ investment holdings consist primarily of total return swaps, a financial instrument where the underlying securities are held by the banks that broker the investments.
On March 1, 2021, Credit Suisse frozen funds worth $ 10 billion invested in Greensill financial products and held by supply chain mutual funds. On March 8, 2021, Greensill filed for bankruptcy protection because it was unable to repay a $ 140 million loan to Credit Suisse. According to the Financial Times, more than 1,000 investors in the marketed Greensill funds were unable to leave their positions. By March 10, 2021, media reports revealed that Greensill investors had legal counsel and intended to sue Credit Suisse for their losses, as Credit Suisse continues to be the largest fund as a fully insured product with little value despite a decision made by insurers during the reporting period Risk of not renewing the cover in the summer of 2020. As the market digested this news, the market price of Credit Suisse ADRs fell from its closing price of $ 14.70 per ADR on March 1, 2021 to $ 12.85 per ADR by March 12, 2021, a decrease of nearly $ 13 % equals.
Then, on Friday, March 26th, 2021, some of the major banks that were providing Archegos’ world-class brokerage services – including Morgan Stanley, Goldman Sachs, and UBS – suddenly began liquidating billions of dollars worth of stocks that Archegos swap with in a fire sale. Positions were priced after Archegos failed to fulfill a margin call. The following weekend, when Credit Suisse attempted to liquidate its own holdings of stocks underlying Archegos’ swap contracts, prices had already collapsed and Credit Suisse was rapidly losing billions of dollars. Credit Suisse issued a press release on March 29, 2021, in which it acknowledged that “the loss resulted from this exit. . . could be very significant and material to our first quarter results. “The Financial Times put Credit Suisse’s estimated losses at $ 3 billion to $ 5 billion, which is more than a year of Credit Suisse’s net income. The Wall Street Journal reported on March 31, 2021 that Credit Suisse “had a core capital buffer of 12.9% at year-end” and “[i]If the Archegos hit is $ 4 billion, that ratio could drop around 1 percentage point to well below the lender’s minimum target of 12.5%. “The market price of Credit Suisse ADRs fell another nearly 20% after this news, falling from a closing price of USD 13.21 per ADR on March 25, 2021 to USD 10.60 per ADR on March 31, 2021.
The complaint alleges that throughout the class period, Defendants had material shortcomings in Credit Suisse’s risk policies and procedures, as well as in its compliance monitoring functions and efforts to allow excessive leverage for high risk clients, including Greensill and Archegos, have been silent about exposing Credit Suisse to billions of dollars in risk in losses.
Credit Suisse investors can no later than June 15, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.