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SAN FRANCISCO, April 08, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Credit Suisse Group AG (NYSE: CS) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
Credit Suisse Group AG (NYSE: CS) Investigation:
The investigation focuses on the accuracy of Credit Suisse’s represented internal controls and risk procedures.
Credit Suisse has in the past assured investors about its prudent, conscious and disciplined risk taking. But these assurances have recently come under question.
On Mar. 1, 2021, Bloomberg reported Credit Suisse suspended a $10 billion family of funds that invested in debt arranged by Greensill Capital. The debt was reliant on a small group of insurers to protect investors against default. As reported by The Wall Street Journal later in March, Credit Suisse knew since 2019 that the funds were too reliant on the small group of insurers but did not remedy the situation. On Mar. 3, 2021, Greensill filed for insolvency. On Mar. 16, 2021, Credit Suisse announced it may incur a charge related to its Greensill exposures and it has redeemed $3.1 billion of the $10 billion to investors in the funds.
Then, on Mar. 29, 2021 Credit Suisse announced a large client (Bill Hwang of Archegos Capital Management, who previously pled guilty to wire fraud in 2012) defaulted on margin calls. Hwang’s leveraged investments reportedly were swaps, a type of derivative that gives an investor exposure to gains or losses in the underlying shares without owning them directly. After the default, on Apr. 6, 2021, Credit Suisse announced it expected to incur a charge of over $4 billion and report Q1 2021 losses in the hundreds of millions of dollars.
All of this news has resulted in analysts downgrading the shares of Credit Suisse and has driven the price of Credit Suisse American Depositary Shares sharply lower.
“We’re focused on investors’ losses and whether Credit Suisse intentionally put fees ahead of its so-called prudent risk management practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Credit Suisse investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Credit Suisse should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895