SAN FRANCISCO, April 26, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Credit Suisse Group AG (NYSE: CS) investors with significant losses to submit your losses now. A securities fraud class action is pending and certain investors may have valuable claims.
Class Period: Oct. 29, 2020 – Mar. 31, 2021
Lead Plaintiff Deadline: June 15, 2021
Visit: www.hbsslaw.com/investor-fraud/CS
Contact An Attorney Now: CS@hbsslaw.com
844-916-0895
Credit Suisse Group AG (NYSE: CS) Securities Fraud Class Action:
Credit Suisse has in the past touted its prudent, conscious and disciplined risk taking. But these assurances have recently come under question.
According to the complaint, Credit Suisse and senior management concealed from investors material defects in the company’s risk policies, procedures, and compliance oversight functions allowing high-risk clients such as Greensill Capital and Archegos Capital Management to take on excessive leverage.
According to the complaint, on Mar. 1, 2021 Credit Suisse suspended a $10 billion family of funds that invested in debt arranged by Greensill Capital that Credit Suisse promoted as fully insured and sold to its clients. Then, on Mar. 8, 2021, Greensill filed for insolvency protection. Credit Suisse later said it expected to record charges related to its Greensill exposures.
Credit Suisse also did business with Archegos, allowing that client to take billions of dollars of exposures to securities through total return swaps and permit it to avoid margin limits and regulatory disclosure requirements. On Mar. 29, 2021 Credit Suisse announced Archegos defaulted on massive margin calls triggered by declines in market prices of the securities underlying the total return swaps. Then, on Mar. 30, 2021 the SEC summoned Credit Suisse and other banks involved in the Archegos affair, being called “one of the biggest fund blowups in years.” In addition, S&P Global Ratings downgraded the company’s corporate debt to negative citing deficiencies in its risk management system.
All of this news has driven the price of Credit Suisse American Depositary Shares sharply lower.
After the class period, Credit Suisse announced it would record a $4.4 billion on its Archegos-related securities fire sales. The Wall Street Journal reported the company and its executives long ignored warnings before Greensill and Archegos imploded.
“We’re focused on investors’ losses and proving Credit Suisse intentionally put fees ahead of its so-called prudent risk management practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Credit Suisse investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Credit Suisse should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CS@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895