NEW YORK, March 16, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Credit Suisse Group AG (“Credit Suisse” or the “Company”) (CS) in the United States District Court for the Southern District of New York on behalf of a class consisting of investors who purchased or otherwise acquired VelocityShares Inverse VIX Short Term Exchange Traded Notes (XIVH) (“Notes”) on the open market from January 29, 2018, through February 5, 2018, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges Plaintiff and each member of the Class purchased the Notes pursuant to a registration statement including prospectuses and pricing supplements (collectively, the “Registration Statement”) that was active during the Class Period. The Registration Statement was materially false and misleading about a metric crucially important to investors.
On February 5, 2018, at 4:00 p.m. EST, the regular-hours market for the trading of the Notes closed. The Notes’ last trading price was $99. Less than 30 minutes later, during the after-hours market, the price of the Notes had dropped to $70.01. By 4:45 pm, the price had dropped to $42.81 and then by 6:28 p.m. the price had declined to a low of $10.16, a drop of approximately 89.74% from its closing value.
On February 6, 2018, Credit Suisse issued a press release stating that it was accelerating the Maturity Date of the Notes. The Complaint further alleges that Credit Suisse obtained substantial financial benefits by accelerating the Maturity Date, because the Notes’ value was depressed (and Credit Suisse’s redemption payment obligation was reduced) by the acceleration. According to the Complaint, although Plaintiff and members of the Class sustained devastating losses as a result of Defendants’ conduct, Credit Suisse itself escaped without damage. As reported by Bloomberg on February 6, 2018, “Credit Suisse says it has not suffered any trading losses related to the exchanged-traded note[.]”
If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
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