Credit Suisse Group AG Class Action Lawsuit - CS

Company Name
Credit Suisse Group AG
Stock Symbol
Class Period
March 19, 2021 to March 25, 2022
Motion Deadline
June 28, 2022
Eastern District of New York
40 days left to seek lead plaintiff status

Case Summary

The Credit Suisse class action lawsuit seeks to represent purchasers of Credit Suisse Group AG (NYSE: CS) securities between March 19, 2021 and March 25, 2022, inclusive (the “Class Period”).  Commenced on April 29, 2022, the Credit Suisse class action lawsuit – captioned de March Bosch v. Credit Suisse Group AG, No. 22-cv-02477 (E.D.N.Y.) – charges Credit Suisse and certain of its top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered significant losses and wish to serve as lead plaintiff of the Credit Suisse class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Credit Suisse class action lawsuit must be filed with the court no later than June 28, 2022.

CASE ALLEGATIONS: An article published by Financial Times on February 6, 2022, entitled “Credit Suisse securitises yacht loans to oligarchs and tycoons,” cited a recent investor presentation for 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”), which disclosed that, in 2017 and 2018, Credit Suisse experienced 12 defaults on yacht and aircraft loans, a third of which were related to U.S. sanctions against Russian oligarchs.  Press reports at the time indicated that Russian billionaires Oleg Deripaska, Arkady Rotenberg, and Boris Rotenberg had to terminate private jet leases with Credit Suisse in those years.

Beginning in or around October 2021, Russia commenced a major military buildup near the Russo-Ukrainian border, in apparent preparation for an invasion of Ukraine.  On February 24, 2022, Russian military forces invaded Ukraine.  In the immediate aftermath of the invasion, Western governments including, among others, the United States, Canada, and the European Union, imposed significant sanctions on Russia.  Barely a week after the commencement of the Russian invasion and the retaliatory sanctions imposed by Western nations, news outlets reported that Credit Suisse had requested non-participating investors who received information about Credit Suisse’s loan portfolio to destroy and permanently erase any confidential information that Credit Suisse provided to them regarding the Securitization Deal.

The Credit Suisse class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Credit Suisse had deficient disclosure controls and procedures and internal control over financial reporting; (ii) 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; (iii) the foregoing conduct subjected Credit Suisse to an increased risk of heightened regulatory scrutiny and/or enforcement actions; (iv) the Securitization Deal concerned loans that Credit Suisse made to Russian oligarchs previously sanctioned by the U.S.; (v) 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; (vi) Credit Suisse’s request that non-participating investors destroy documents related to the Securitization Deal was intended to conceal Credit Suisse’s noncompliance with U.S. and international sanctions in its lending practices; (vii) the foregoing, once revealed, was likely to subject Credit Suisse to enhanced regulatory scrutiny and significant reputational harm; and (viii) as a result, Credit Suisse’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 (“House Oversight Committee”) sent Credit Suisse a letter asking Credit Suisse 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 B. Maloney and Rep. Stephen F. 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 2.58%, damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Credit Suisse securities during the Class Period to seek appointment as lead plaintiff in the Credit Suisse class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Credit Suisse class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Credit Suisse class action lawsuit.  An investor’s ability to share in any potential future recovery of the Credit Suisse class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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