Credit Suisse Group AG

Ticker: CS

Class Period Start: 03/19/2021

Class Period End: 03/25/2022

Registration Deadline: 06/28/2022

A securities class action has been filed in the USDC – E.D.N.Y. against Credit Suisse Group AG (CS) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Credit Suisse securities between March 19, 2021 through March 25, 2022.  Credit Suisse, together with its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific. The Company offers private banking and wealth management solutions, including advisory, investment, financial planning, succession planning, and trust services, and financing and lending, and multi-shore platform solutions.
According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that:

  • Credit Suisse had deficient disclosure controls and procedures and internal control over financial reporting;
  • Credit Suisse’s practice of lending money to Russian oligarchs subject to U.S. and international sanctions created a significant risk of violating rules pertaining to those sanctions and future sanctions;
  • the foregoing conduct subjected the Company to an increased risk of heightened regulatory scrutiny and/or enforcement actions;
  • a synthetic securitization deal, in which Credit Suisse sold off $80 million worth of risk related to a $2 billion portfolio of loans backed by assets owned by certain of the bank’s ultra-high net worth clients (the “Securitization Deal”) concerned loans that Credit Suisse made to Russian oligarchs previously sanctioned by the U.S.;
  • the purpose of the Securitization Deal was to offload the risks associated with these loans and mitigate the impact on Credit Suisse of sanctions likely to be implemented by Western nations in response to Russia’s invasion of Ukraine;
  • Credit Suisse’s request that non-participating investors destroy documents related to the Securitization Deal was intended to conceal the Company’s noncompliance with U.S. and international sanctions in its lending practices;
  • the foregoing, once revealed, was likely to subject the Company to enhanced regulatory scrutiny and significant reputational harm; and
  • as a result, the Company’s public statements were materially false and misleading at all relevant times.

On March 28, 2022, the U.S. House of Representatives Committee on Oversight and Reform sent Credit Suisse a letter asking the Company to turn over information and documents about a portfolio of loans backed by yachts and private jets owned by clients, potentially including sanctioned Russian individuals.  In the letter, House Oversight Chair Carolyn Maloney and Rep. Stephen Lynch, chair of the Subcommittee on National Security, questioned Credit Suisse’s request that hedge funds and other non-participating investors “destroy documents” related to yachts and private jets owned by the bank’s clients.  “Given the timing of this request and its subject matter,” the House Democrats wrote, “Credit Suisse’s action raises significant concerns that it may be concealing information” about whether participants in the deal may be “evading sanctions” imposed by the West after Russia’s invasion of Ukraine.

On this news, Credit Suisse’s stock price fell $0.21 per share, or 2.58%, to close at $7.94 per share on March 28, 2022.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

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