The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Credit Suisse Group AG (NYSE: CS) securities between December 1, 2022 and February 17, 2023, for violations of the Securities Exchange Act of 1934. Credit Suisse, together with its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Credit Suisse. Shareholders who want to act as lead plaintiff for the class must file their papers by May 8, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Credit Suisse Group AG (CS) Misled Investors Regarding Customer Outflows and Overstated its Financial Position and Prospects
According to the complaint, during the class period, defendants failed to disclose that contrary to the representations of Credit Suisse's Chairman, Axel P. Lehmann, in December 2022, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing. Accordingly, Credit Suisse had downplayed the impact of the Company’s recent series of quarterly losses and risk and compliance failures on liquidity and its ability to retain client funds, and as a result, Credit Suisse had overstated the Company’s financial position and/or prospects.
In October 2022, Credit Suisse began experiencing a sharp increase in customer outflows, or withdrawals of client funds, after a series of quarterly losses and risk and compliance failures significantly decreased the Company’s American Depositary Share (“ADS”) price. On December 1, 2022, 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”. On this news, Credit Suisse’s ADS price rose $0.29 per ADS, or 9.36%, to close at $3.38 per ADS on December 2, 2022.
On February 9, 2023, Credit Suisse announced its 2022 financial results, reporting customer outflows of 110.5 billion Swiss francs in the final three months of 2022, which exceeded market expectations. On 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.
Then, on February 21, 2023, Reuters reported that the Swiss Financial Market Supervisory Authority (“FINMA”), was reviewing Lehmann’s previous comments regarding customer outflows. On 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.
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