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Law Offices of Howard G. Smith announces an investigation on behalf of Credit Suisse Group AG ("Credit Suisse" or the "Company") (NYSE: CS) investors concerning the Company’s possible violations of federal securities laws.
On March 1, 2021, Credit Suisse froze $10 billion in funds that were invested in financial products from Greensill Capital ("Greensill") and held by its supply-chain investment funds.
On March 8, 2021, Greensill filed for insolvency protection, and more than 1,000 investors in the Greensill funds marketed were unable to exit their positions.
On 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.
On this news, the Company’s American Depositary Receipts ("ADRs") fell $1.85, or 12.5%, to close at $12.85 per ADR on March 12, 2021, thereby injuring investors.
On Friday, March 26, 2021, several banks began liquidating billions of dollars’ worth of shares that Archegos Capital Management ("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 following weekend, prices had collapsed and Credit Suisse amassed billions of dollars in losses.
On March 29, 2021, Credit Suisse conceded 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 the Company’s net profit.
On this news, the market price of Credit Suisse ADRs fell another nearly 20%, from a close of $13.21 per ADR on March 25, 2021 to close at $10.60 per ADR on March 31, 2021.
If you purchased Credit Suisse ADRs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210421006113/en/