Credit Suisse Group AG (CS) Accused of Concealing Information About Whether Participants in its Securitization Deal are Evading Sanctions Imposed by the West
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 March 19, 2021 and March 25, 2022, for violations of the Securities Exchange Act of 1934. Credit Suisse is an international financial services group.
According to the complaint, Credit Suisse entered into a Securitization Deal in which it 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, including Russian oligarchs previously sanctioned by the U.S. Credit Suisse then requested that non-participating investors destroy documents related to the Securitization Deal to conceal the Company’s noncompliance with U.S. and international sanctions in its lending practices.
During the class period, defendants 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; and (iii) the foregoing conduct subjected the Company to an increased risk of heightened regulatory scrutiny and/or enforcement actions.
On March 28, 2022, the U.S. House of Representatives Committee on Oversight and Reform 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. The letter also questioned the Company’s request that hedge funds and other non-participating investors “destroy” documents related to yachts and private jets owned by the bank’s clients. On this news, the Company’s stock price fell 2.58%.
Next Steps: If you acquired shares of Credit Suisse Group AG (CS) between March 19, 2021 and March 25, 2022, you have until June 28, 2022, to ask the court to appoint you lead plaintiff for the class. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.