RADNOR, Pa., May 1, 2021 /PRNewswire/ — The law firm of Kessler Topaz Meltzer & Check, LLP reminds Credit Suisse Group AG (NYSE: CS) («Credit Suisse») investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired Credit Suisse American Depositary Receipts («ADRs») between October 29, 2020 and March 31, 2021, inclusive (the «Class Period»).
InvestorDeadline Reminder: Investors who purchased or acquired Credit Suisse ADRs during the Class Period may, no later than June 15, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional 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; via e-mail at firstname.lastname@example.org; or click 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»), who for filed for insolvency protection on March 8, 2021, was a financial services company based in the United Kingdom and Australia focused on the provision of supply-chain financing and related services. Archegos Capital Management («Archegos») is a family office investment fund run by Sung Kook Hwang.
On March 1, 2021, Credit Suisse froze $10 billion in funds that were invested in Greensill’s financial products and held by its supply-chain investment funds. On March 8, 2021, Greensill filed for insolvency protection, as it found itself unable to repay a $140 million loan to Credit Suisse. By March 10, 2021, media reports revealed that Greensill investors had retained counsel and intended to sue Credit Suisse for their losses because Credit Suisse continued to market the biggest of the funds as a fully insured, low-risk product despite a decision by insurers during the summer of 2020 not to renew coverage. As the market digested this news, the market price of Credit Suisse ADRs fell from its close of $14.70 per ADR on March 1, 2021 to close at $12.85 per ADR by March 12, 2021, a decline of almost 13%.
Then, on Friday, March 26, 2021, several of the large banks offering prime brokerage services to Archegos – including Morgan Stanley, Goldman Sachs and UBS – suddenly began liquidating billions of dollars’ worth of shares that Archegos had swap positions on at fire sale prices after Archegos had failed to meet a margin call. By the time Credit Suisse tried to liquidate its own holdings of stocks underlying Archegos’ swap contracts over the ensuing weekend, prices had already collapsed and Credit Suisse quickly racked up billions of dollars in losses. Credit Suisse issued a press release on March 29, 2021 conceding that «the loss resulting from this exit . . . could be highly significant and material to our first quarter results.» The Financial Times then pegged Credit Suisse’s estimated losses at between $3 billion and $5 billion, more than a year’s worth of Credit Suisse’s net profit. The market price of Credit Suisse ADRs fell another nearly 20% following this news, declining from a close of $13.21 per ADR on March 25, 2021 to close at $10.60 per ADR on March 31, 2021.
The complaint alleges that throughout the Class Period, the defendants concealed material defects in Credit Suisse’s risk policies and procedures and compliance oversight functions and efforts to allow high-risk clients to take on excessive leverage, including Greensill and Archegos, exposing Credit Suisse to billions of dollars in losses.
Credit Suisse investors may, no later than June 15, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may 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 litigation. In order to be appointed as a 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 will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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SOURCE Kessler Topaz Meltzer & Check, LLP