According to the law firm press release, the complaint specifically details that on February 21, 2012, Credit Suisse announced that it temporarily suspended further issuances of the TVIX ETNs due to “internal limits” reached on the size of the ETNs. As a result of the suspension, shares of TVIX subsequently traded at prices uncorrelated to the S&P VIX Short-term Futures index – the index that the ETN was purportedly designed to track through the use of VIX futures. This “disconnect” lasted for approximately one month.
On March 22, 2012, shares of TVIX declined in price by over 29% as rumors leaked into the market that Credit Suisse was considering whether to recommence issuance of the ETNs. That evening, Credit Suisse announced that it would in part reopen issuance of TVIX shares on a limited basis and on March 23, 2012, shares of TVIX declined further by almost 30% resulting in devastating losses for investors.
As detailed in the Complaint, the Offering Documents used to solicit purchases of TVIX ETNs by members of the Class materially understated certain risks associated with these investments. Defendants also misleadingly omitted to disclose necessary information and material risks of certain scenarios transpiring that might lead to large losses from investments in TVIX ETNs.
On August 24, 2012, the Court issued an Order consolidating cases, appointing lead plaintiffs, and approving the selection of lead counsel. On October 9, 2012, the Plaintiffs filed a consolidated and amended class action complaint.
On June 9, 2014, the Court issued an Order granting in entirety Defendants' motion to dismiss the Complaint. the Clerk was directed to close this case.