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NEW YORK, May 03, 2021 (GLOBE NEWSWIRE) — Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of Credit Suisse Group AG (“Credit Suisse” or the “Company”) (NYSE: CS) from October, 29 2020 through March 31, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Exchange Act of 1934.
If you purchased Credit Suisse securities, and/or would like to discuss your legal rights and options please visit Credit Suisse Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
The complaint alleges that the following facts were known or recklessly disregarded by the defendants but concealed from the investing public during the Class Period: (i) Credit Suisse’s co-mingling of its lending, asset management, and private wealth management functions and imprudently aggressive pursuit of fees had materially diminished the Company’s ability to properly assess and manage its own risk exposure to high-risk clients and potential liabilities from client losses; (ii) Credit Suisse had ignored numerous red flags in connection with the Greensill funds and overrode the concerns of the Company’s in-house credit-structuring team in packing and selling billions of dollars’ worth of Greensill-linked securities; (iii) Credit Suisse had conspired with Sung Kook (a.k.a. Bill) Hwang to allow Archegos to covertly take on billions of dollars in excessively concentrated and risky positions by utilizing highly leveraged total return swaps, placing the risk of loss associated with these positions on Credit Suisse and its investors; (iv) Credit Suisse was understating its exposure to risk and thus overstating its Tier 1 capital ratios in public statements; and (v) Credit Suisse’s internal controls were inadequate to ensure that the Company’s potential liability to customers and losses arising from its exposure to customer losses were properly accounted for, managed, and disclosed to investors.
On March 1, 2021, Credit Suisse suddenly froze $10 billion in funds that were invested in Greensill’s financial products and held by its supply-chain investment funds. On March 8, 2021, Greensill filed for insolvency protection. By March 10, 2021, the Financial Times reported that Greensill’s collapse exposed Credit Suisse to billions of dollars in potential liability.
As the market digested this news, the price of Credit Suisse American Depository Receipts (“ADRs”) collapsed from a close of $14.70 per ADR on March 1, 2021 to just $12.85 per ADR by market close on March 12, 2021, on unusually high volume, a decline of almost 13%.
On March 30, 2021, S&P Global Ratings downgraded Credit Suisse’s corporate debt to negative from stable and stated in a press release that “[i]n our view, there is a meaningful risk that clarification of the reasons for a potential material loss related to a single client may reveal deficiencies in Credit Suisse group’s risk management system or a risk appetite that is not commensurate with current ratings. Then, on March 31, 2021 The Wall Street Journal reported that Credit Suisse “had a core capital buffer of 12.9% at year-end” and “[i]f the Archegos hit is $4 billion, that ratio could fall by roughly 1 percentage point to well below the 12.5% minimum targeted by the lender.”
The market price of Credit Suisse ADRs fell another nearly 20% on this news, declining from their close of $13.21 per ADR on March 25, 2021 to close at $10.60 per ADR on March 31, 2021, on unusually high volume.
If you wish to serve as lead plaintiff, you must move the Court no later than June 15, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Credit Suisse securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/creditsuissegroupag-cs-shareholder-class-action-lawsuit-fraud-stock-392/apply/ or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
Seidman@bernlieb.com
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