SAN FRANCISCO, April 26, 2021 (GLOBE NEWSWIRE) – Hagens Berman urges Credit Suisse Group AG (NYSE: CS) Investors with significant losses can file their losses now. A class action lawsuit for securities fraud is pending and certain investors may have valuable claims.
School lesson: October 29, 2020 – March 31, 2021
Deadline of the main plaintiff: June 15, 2021
Contact an attorney now: CS@hbsslaw.com
Credit Suisse Group AG (NYSE: CS) class action lawsuit against securities fraud:
Credit Suisse has in the past touted its prudent, conscious and disciplined willingness to take risks. However, these representations have recently been called into question.
According to the complaint, Credit Suisse and senior management withheld investors from material shortcomings in the company’s risk policies, procedures and compliance oversight functions that allow high-risk clients such as Greensill Capital and Archegos Capital Management to take on undue leverage.
According to the complaint, on March 1, 2021, Credit Suisse suspended a $ 10 billion family of funds that invested in Greensill Capital-arranged debt that Credit Suisse advertised as fully insured and sold to its clients. Then, on March 8, 2021, Greensill filed for bankruptcy protection. Credit Suisse later announced that it is expected to post fees related to its Greensill exposures.
Credit Suisse has also done business with Archegos, which enabled clients to get exposure to billions in securities through total return swaps, avoiding margin limits and disclosure requirements. On March 29, 2021, Credit Suisse announced that Archegos was behind schedule due to massive margin calls triggered by market price declines in the securities underlying the total return swaps. Then, on March 30, 2021, the SEC convened Credit Suisse and other banks involved in the Archegos affair and was described as “one of the biggest fund explosions in years.” In addition, S&P Global Ratings downgraded the company’s corporate debt to negative values because of deficiencies in the risk management system.
All of this news has slashed the price of Credit Suisse’s American Depositary Shares.
After the lesson, Credit Suisse announced it was posting $ 4.4 billion on its Archegos-related sales of securities. The Wall Street Journal reported that the company and its executives ignored warnings long before Greensill and Archegos imploded.
“We’re focusing on investor losses and proving that Credit Suisse is deliberately putting fees ahead of its so-called prudent risk management practices,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a Credit Suisse investor and you are experiencing significant losses or have knowledge that could aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblower: Individuals with non-public information about Credit Suisse should review their options to help with the investigation or to use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844-916-0895 or send an email to CS@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities across the country and eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
Reed Kathrein, 844-916-0895