The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that securities class action complaints have been against Credit Suisse Group AG (“Credit Suisse”) (NYSE: CS). The complaints charge Credit Suisse with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Credit Suisse’s materially misleading statements and omissions to the public, Credit Suisse’s investors have suffered significant losses.
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LEAD PLAINTIFF DEADLINE: MAY 8, 2023
CLASS PERIOD: MARCH 10, 2022 THROUGH MARCH 20, 2023
Kessler Topaz is one of the world’s foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
CREDIT SUISSE’S ALLEGED MISCONDUCT
On March 10, 2022, Credit Suisse filed with the SEC its 2021 annual report on a Form 20-F for the year ended December 31, 2021. The 2021 annual report failed to identify any material weaknesses with Credit Suisse’s internal controls.
On December 1, 2022, Credit Suisse's Chairman, Axel P. Lehmann ("Lehmann") stated in an interview with Financial Times that customer outflows had not only "completely flattened out," but had, in fact, "partially reversed." The following day, in an interview with Bloomberg Television, Lehmann reiterated his previous statements, reassuring investors that as of November 11, 2022, customer outflows had "basically stopped.” Following Lehmann's statements, Credit Suisse's American Depository Share (“ADS”) price rose $0.29 per ADS, or 9.36%, to close at $3.38 per ADS on December 2, 2022.
Then on February 9, 2023, Credit Suisse issued a press release announcing its 2022 financial results. The press release revealed that, contrary to Lehmann's prior statements, large customer outflows had continued through year-end 2022. Specifically, the press release reported customer outflows of 110.5 billion Swiss francs in the final three months of 2022, a figure which far exceeded market expectations. Following this news, Credit Suisse's ADS price fell $0.56 per ADS, or 15.64%, to close at $3.02 per ADS on February 9, 2023.
On February 21, 2023, Reuters reported that the Swiss Financial Market Supervisory Authority was reviewing Lehmann's previous comments regarding customer outflows. Following this news, Credit Suisse's ADS price fell another $0.10 per ADS, or 3.31%, to close at $2.92 per ADS on February 21, 2023.
Then on Tuesday, March 14, 2023, Credit Suisse issued its annual 2022 report and revealed that it had identified “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022. Additionally, on Wednesday, March 15, 2023, the chairman of Credit Suisse’s largest shareholder, Saudi National Bank, which holds 9.88% of Credit Suisse, announced that it won’t provide further financial support to Credit Suisse and that it would not buy more shares on regulatory grounds.
Following this news, the price of Credit Suisse ADSs fell 13.94% to close at $2.16 per ADS on March 15, 2023.
Finally, on March 20, 2023, Credit Suisse issued an announcement on Form 6-K of its merger agreement with Union Bank of Switzerland and that Union Bank of Switzerland would be the surviving entity upon closing of the merger transaction.
Following this news, the price of Credit Suisse ADSs fell 52.99% to close at $0.9450 per ADS on March 20, 2023.
WHAT CAN I DO?
Credit Suisse investors may, no later than May 8, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Credit Suisse investors who have suffered significant losses to contact the firm directly to acquire more information. The first class action complaint against Credit Suisse, Calhoun v. Credit Suisse Group AG, et al. Case No. 23-cv-01297, is filed in the United States District Court for the District of New Jersey before the Honorable Karen McGlashan Williams.
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WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaints were not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.