INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Credit Suisse Group AG (NYSE: CS) Shareholders
NEWTOWN, PA, March 16, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Credit Suisse Group AG (“Credit Suisse” or the “Company”) (NYSE: CS) American depositary shares (“ADS”) or other Credit Suisse securities between December 1, 2022 and February 17, 2023 (the “Class Period”).
Credit Suisse investors may move the U.S. District Court for the District of New Jersey to appoint them as lead plaintiff, no later than May 8, 2023. Current holders of Credit Suisse securities may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP to discuss your investment losses in Credit Suisse stock at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Credit Suisse Group AG
Headquartered in Switzerland, Credit Suisse is a global investment bank and financial services firm. They provide various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific, including wealth management solutions, risk management solutions, managed investment products, wealth planning, succession planning, and trust services.
The Securities Fraud Claims
In October 2022, Credit Suisse began experiencing a sharp increase in customer outflows after a series of quarterly losses and risk and compliance failures significantly decreased the Company’s ADS price. Regardless of the facts, Defendant Axel Lehmann stated in an interview with the Financial Times that outflow “withdraws had flattened across the group and had started to reverse in the Swiss domestic business.”
The Complaint alleges that, throughout the Class Period, Credit Suisse made materially false and misleading statements regarding the Company’s business, operations, and prospects and/or failed to disclose that: (i) contrary to prior representations by Defendant Lehmann in December 2022, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing; (ii) Credit Suisse had downplayed the impact of the recent series of quarterly losses and the risk of compliance failures on liquidity and its ability to retain client funds. As a result, Credit Suisse overstated its financial position and/or financial prospects.
On February 9, 2023, before market hours, the Company filed with the SEC its quarterly report on Form 6-K for the period ended December 31, 2022 (the “4Q22 Report”). Following this news, the price of Credit Suisse ADS fell 15.6% to close at $3.02 per share.
On March 9, 2023, Credit Suisse issued an announcement stating it would delay the publication of its 2022 Annual Report after a call from the SEC regarding cash flow statements as well as related controls on March 8, 2023. On this news, the price of Credit Suisse ADS fell 4.48% to close at $2.77 per share.
On March 14, 2023, the Company filed its 2022 annual report with the SEC, which identified material weakness in the Company’s internal controls. On this news, the price of Credit Suisse ADS fell 1.18% to close at $2.51 per share.
Then on March 15, 2023, Reuters published an article citing Saudi National Bank would not buy any more of the Company’s shares on regulatory grounds. On this news, the price of Credit Suisse ADS fell 13.94% to close at $2.16 per share, furthering damaging investors.
For more information, please contact:
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.