Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against Credit Suisse Group AG
RADNOR, Pa., April 21, 2021 / PRNewswire / – Kessler Topaz Meltzer & Check, LLP law firm announces that a class action lawsuit has been filed for securities fraud The United States District Court for the Southern District of new York against Credit Suisse Group AG (NYSE: CS) (“Credit Suisse”) on behalf of those who have acquired or acquired American Depositary Receipts (“ADRs”) between Credit Suisse October 29, 2020 and March 31, 2021including (the “Class Period”).
Investor deadline reminder: Investors who have bought or acquired ADRs from Credit Suisse during the class period can do so 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; per email to [email protected];; 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 has filed for bankruptcy protection March 8, 2021was a financial services company based in the United Kingdom and Australia focused on providing supply chain finance and related services. Archegos Capital Management (“Archegos”) is a family office mutual fund of 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, 2021Credit Suisse froze $ 10 billion in funds invested in Greensill’s financial products and held by the supply chain mutual funds. On March 8, 2021Greensill filed for bankruptcy protection as 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, 2021Media reports showed that Greensill investors had legal counsel and intended to sue Credit Suisse for their losses as Credit Suisse continued to renew coverage for the largest fund, despite a decision by insurers in the summer of 2020 as a fully insured, low risk product. As the market digested this news, the market price of Credit Suisse ADRs fell from the closing price of $ 14.70 by ADR March 1, 2021 to close at $ 12.85 by ADR from March 12, 2021a decrease of almost 13%.
Then further Friday March 26th 2021Several of the major banks that provided Archegos’ world-class brokerage services – including Morgan Stanley, Goldman Sachs, and UBS – suddenly began liquidating billions of dollars worth of stocks in which Archegos had traded positions at fire sale prices after Archegos failed to hit a margin on the phone 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 has on March 29, 2021 acknowledged that “the loss on this exit … could be very significant and material to our first quarter results”. The Financial Times then set the estimated losses for Credit Suisse in the meantime $ 3 billion and $ 5 billionmore than a year of Credit Suisse net income. The Wall Street Journal reported on it March 31, 2021 that Credit Suisse “had a core capital buffer of 12.9% at the end of the year” and “[i]f is the Archegos hit $ 4 billionThis rate could fall by around 1 percentage point to well below the minimum of 12.5% targeted by the lender. “The market price of Credit Suisse ADRs fell another almost 20% after this news, starting from a closing price of $ 13.21 by ADR March 25, 2021 to close at $ 10.60 by ADR 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 are allowed 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 collected billions of dollars on behalf of institutional and individual investors The United States and all over 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.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP