NEW YORK, April 29, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Credit Suisse Group AG (“Credit Suisse” or the “Company”) (NYSE: CS) and certain of its officers . The class action, filed in the United States District Court for the Eastern District of New York and registered as 22-cv-02477, is on behalf of a class consisting of all persons and entities other than defendants. who purchased or otherwise acquired Credit Suisse securities between March 19, 2021 and March 25, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by the Defendants’ violations of federal laws on securities and to seek remedies under sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its senior executives.
If you are a shareholder who purchased or otherwise acquired Credit Suisse securities during the class period, you have until June 28, 2022 to ask the court to appoint you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
Credit Suisse, together with its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas and Asia-Pacific. The Company offers private banking and wealth management solutions, including advisory, investment, financial planning, estate and trust planning services, as well as financing and lending solutions, and platforms multi-shore.
Credit Suisse has a history of doing business with Russian oligarchs or very wealthy business leaders with significant political influence. For example, an article published by FinancialTimes on February 7, 2022, titled “Credit Suisse securitizes yacht loans to oligarchs and tycoons,” cited a recent investor presentation for a synthetic securitization deal, in which Credit Suisse sold $80 million of risk from a portfolio of 2 billion dollars in loans secured by assets held by some of the bank’s ultra-high net worth clients (the “Securitization Agreement”), which revealed that in 2017 and 2018, Credit Suisse experienced 12 defaults on loans of yachts and planes, a third of which were linked to US sanctions against Russian oligarchs. News reports at the time indicated that Russian billionaires Oleg Deripaska, Arkady Rotenberg and Boris Rotenberg had to terminate private jet leases with Credit Suisse during those years.
Beginning in or around October 2021, Russia began a major military buildup near the Russian-Ukrainian border, apparently in preparation for an invasion of Ukraine. Although the Russian government repeatedly denied plans to invade or attack Ukraine, the United States subsequently released intelligence on Russian invasion plans, including satellite photographs showing Russian troops and equipment near the Russian-Ukrainian border.
In November 2021, as Russia’s military buildup on the Russian-Ukrainian border continued, the company entered into the securitization deal.
A few months later, on February 24, 2022, Russian military forces invaded Ukraine. Immediately after the invasion, Western governments, including the United States, Canada, and the European Union, among others, imposed significant sanctions on Russia. The penalties included, among othersmeasures targeting Russia’s ultra-wealthy oligarchs by denying them access to the global financial system and allowing, in some cases, the seizure of some of their high-value assets located outside Russia.
Barely a week after the start of the Russian invasion and the retaliatory sanctions imposed by Western nations, media reported that Credit Suisse had asked non-participating investors who had received information about the company’s loan portfolio destroy and permanently erase any confidential information that Credit Suisse provided to them regarding the securitization transaction.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or 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 US and international sanctions created a significant risk of violation of the rules relating to these sanctions and future sanctions; (iii) the foregoing conduct has subjected the Company to increased risk of increased regulatory scrutiny and/or enforcement action; (iv) the securitization agreement related to loans that Credit Suisse had made to Russian oligarchs previously sanctioned by the United States; (v) the purpose of the securitization agreement was to offload the risks associated with these loans and to mitigate the impact on Credit Suisse of sanctions that may be implemented by Western countries in response to the invasion of Ukraine by Russia; (vi) Credit Suisse’s request to non-participating investors to destroy documents related to the securitization transaction was intended to conceal the company’s failure to comply with US and international sanctions in its lending practices; (vii) the foregoing, when disclosed, was likely to subject the Company to increased regulatory scrutiny and material damage to its reputation; and (viii) as a result, the Company’s public statements were materially false and misleading at all material times.
On March 28, 2022, the U.S. House of Representatives Oversight and Reform Committee sent Credit Suisse a letter asking the company to turn over information and documents on a portfolio of loans secured by yachts and ships. private jets belonging to customers, potentially including sanctioned Russians. . In the letter, House Oversight Chair Carolyn Maloney and Rep. Stephen Lynch, chair of the National Security Subcommittee, questioned Credit Suisse’s request to hedge funds and other nonparticipating investors to “destroy documents” related to yachts and private jets belonging to the bank. clients. “Given the timing of this request and its subject matter,” House Democrats wrote, “Credit Suisse’s action raises significant concerns that it may be withholding information” about whether participants in the deal could “escape sanctions” imposed by the West after Russia’s decision. invasion of Ukraine.
On this news, Credit Suisse’s stock price fell $0.21 per share, or 2.58%, to close at $7.94 per share on March 28, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980