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Credit Suisse Group AG (2021)

Case Details

Class Period: October 29, 2020 - March 31, 2021
Date Filed: April 16, 2021
Case Number: 1:21cv03385
Jurisdiction: New York Southern District Court
icon-casetype Case Type: Securities Case
Days Left to
Seek Plaintiff:
33

Case Summary

The Credit Suisse class action lawsuit alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business metrics and financial prospects. Specifically, defendants concealed material defects in the Company’s risk policies and procedures and compliance oversight functions and efforts to allow high-risk clients to take on excessive leverage, including Greensill Capital (“Greensill”) and Archegos Capital Management (“Archegos”), exposing the Company to billions of dollars in losses. As a result of defendants’ false statements, Credit Suisse ADRs traded at artificially inflated prices, reaching a high of $14.95 per ADR by February 2021. Subsequently, Credit Suisse revealed billions of dollars in losses tied to the collapse of its Greensill-linked funds and the implosion of total return swap positions Credit Suisse had entered into with Archegos. These corporate scandals have revealed grave deficiencies in Credit Suisse’s risk and compliance activities, causing the price of Credit Suisse ADRs to plummet, reaching a low of just $10.60 per ADR by March 31, 2021.

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