The Securities Exchange Act of 1934 was allegedly violated by Credit Suisse Group AG (NYSE: CS) and a few of its senior employees, according to the Credit Suisse class action lawsuit.
CASE ALLEGATIONS: Credit Suisse provides risk management solutions, such as managed investment products, wealth planning, succession planning, and trust services. It also provides wealth management services, including investment advice and discretionary asset management services. Credit Suisse started to notice a dramatic surge in customer outflows, or withdrawals of client cash, in October 2022. Axel P. Lehmann, the defendant and chairman of Credit Suisse, declared in a Financial Times interview on December 1, 2022 that customer outflows had not only “completely flattened out,” but had been “partially reversed.”
According to the Credit Suisse class action lawsuit, defendants made false and/or misleading statements throughout the Class Period and/or failed to disclose that: (i) contrary to prior representations, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing; and (ii) as a result, Credit Suisse had downplayed the impact of Credit Suisse’s recent series of quarterly losses and risk and compliance failures on liquidity and its adequacy.
Under the Private Securities Litigation Reform Act of 1995, any investor who bought or acquired Credit Suisse securities during the Class Period may ask to be named as the case’s lead plaintiff. A lead plaintiff is typically the petitioner who has the largest financial stake in the remedy the putative class is seeking and who is also representative and sufficient of the putative class. The lead plaintiff oversees the Credit Suisse class action case on behalf of all other class members. To represent the lead plaintiff in the Credit Suisse class action litigation, the lead plaintiff may choose any law firm. It is not necessary to be the lead plaintiff in the Credit Suisse class action case in order for an investment to be eligible to partake in any potential future compensation.