| COMPANY |
Credit Suisse Group AG |
| COURT |
United States District Court for the District of New Jersey |
| CASE NUMBER |
23-cv-01297 |
| JUDGE |
The Hon. Karen McGlashan Williams |
| CLASS PERIOD |
March 10, 2022 and March 20, 2023 |
| SECURITY TYPE |
Securities |
Credit Suisse investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than May 8, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Credit Suisse Group AG (“Credit Suisse”) (NYSE: CS) securities between March 10, 2022 and March 20, 2023, both dates inclusive (the “Class Period”).
Case Background:
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 wealth management solutions, including investment advice and discretionary asset management services; risk management solutions, such as managed investment products; and wealth planning, succession planning, and trust services.
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 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 ADS price rose $0.29 per ADS, or 9.36%, to close at $3.38 per ADS on December 2, 2022.
Thereafter, 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 announced on a Form 6-K 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.
The complaints allege that, throughout the Class Period, 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: (1) contrary to Defendant Lehmann's representations in December 2022, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing; (2) accordingly, Credit Suisse had downplayed the impact of its recent series of quarterly losses and risk and compliance failures on liquidity and its ability to retain client funds; (3) as a result, Credit Suisse had overstated its financial position and/or prospects; and (4) as a result, the company's public statements were materially false and misleading at all relevant times.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.