Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >Credit Suisse Group AG</h3 >
This links to the home page
Cases
PRACTICE AREAS

Credit Suisse Group AG


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Credit Suisse Group AG (“Credit Suisse” or the “Company”) (NYSE: CS, CSGKF) securities from March 19, 2021 through March 25, 2022, both dates inclusive (the “Class Period”). Investors have until June 28, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit. 
 
Credit Suisse 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, succession planning, and trust services; and financing and lending, and multi-shore platform solutions.
 
Credit Suisse has a history of business dealings with Russian oligarchs, or ultra- high net worth business leaders possessing significant political influence. For example, an article published by Financial Times on February 7, 2022, entitled “Credit Suisse securitises yacht loans to oligarchs and tycoons”, cited a recent investor presentation for a synthetic securitization deal, in which Credit Suisse sold off $80 million worth of risk related to a $2 billion portfolio of loans backed by assets owned by certain of the bank’s ultra-high net worth clients (the “Securitization Deal”), which disclosed that, in 2017 and 2018, Credit Suisse experienced 12 defaults on yacht and aircraft loans, a third of which were related to U.S. sanctions against Russian oligarchs.
 
On March 28, 2022, the U.S. House of Representatives Committee on Oversight and Reform (“House Oversight Committee”) sent Credit Suisse a letter asking the Company to turn over information and documents about a portfolio of loans backed by yachts and private jets owned by clients, potentially including sanctioned Russian individuals. In the letter, House Oversight Committee Chair Carolyn Maloney and Rep. Stephen Lynch, chair of the Subcommittee on National Security, questioned Credit Suisse’s request that hedge funds and other non-participating investors “destroy documents” related to yachts and private jets owned by the bank’s clients. “Given the timing of this request and its subject matter,” the House Democrats wrote, “Credit Suisse’s action raises significant concerns that it may be concealing information” about whether participants in the deal may be “evading sanctions” imposed by the West after Russia’s invasion of Ukraine. On this news, Credit Suisse’s stock price declined by $0.21 per share, or approximately 2.58%, from $8.15 per share on March 25, 2022 to close at $7.94 per share on March 28, 2022.
 
The lawsuit alleges throughout the Class Period, 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 U.S. and international sanctions created a significant risk of violating rules pertaining to those sanctions and future sanctions; (iii) the foregoing conduct subjected the Company to an increased risk of heightened regulatory scrutiny and/or enforcement actions; (iv) the Securitization Deal concerned loans that Credit Suisse made to Russian oligarchs previously sanctioned by the U.S.; (v) the purpose of the Securitization Deal was to offload the risks associated with these loans and mitigate the impact on Credit Suisse of sanctions likely to be implemented by Western nations in response to Russia’s invasion of Ukraine; (vi) Credit Suisse’s request that non-participating investors destroy documents related to the Securitization Deal was intended to conceal the Company’s noncompliance with U.S. and international sanctions in its lending practices; (vii) the foregoing, once revealed, was likely to subject the Company to enhanced regulatory scrutiny and significant reputational harm; and (viii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
 

Credit Suisse Group AG Investor Contact Form