Saxena White Announces Preliminary Approval of Settlement with Credit Suisse Group AG

Saxena White is pleased to announce that on August 24, 2020, Judge Schofield of the United States District Court for the Southern District of New York, granted preliminary approval of the $15.5 million settlement reached in the action captioned, City of Birmingham Retirement and Relief System, et al., vs. Credit Suisse Group AG, et al.  Saxena White is serving as Co-Lead Counsel in the action.  The case involved Credit Suisse’s $1 billion write-down from losses associated with its risky distressed debt portfolio.  The complaint alleged that the defendants made false and misleading statements or omissions in Credit Suisse’s 2014 Annual Report related to the company’s risk limits and risk controls, and that Credit Suisse’s stock price declined when the truth regarding defendants’ alleged misrepresentations was revealed.  After plaintiffs overcame defendants’ motion to dismiss, the parties engaged in extensive discovery, including the review and analysis of over 1.5 million pages of documents produced by defendants.  As a company based in Switzerland, there were a number of complicated issues related to foreign discovery, which the Lead Plaintiffs overcame in securing this recovery for the benefit of Credit Suisse shareholders.  Plaintiffs’ experts estimated that the $15.5 million recovery represented a recovery in the range of 23.7% to 63.4% of plaintiffs’ damages, far higher than the median recovery in securities class actions.   A final approval hearing is set for December 10, 2020.