According to the allegations in the Complaint, this case is about a fraudulent scheme to manipulate the market for the common stock of ECD. The facts and circumstances underlying this action concern a public offering of 4,714,975 shares of ECD common stock on June 18, 2008 (the "Offering"). The ECD common stock prospectus supplement filed with the SEC and dated June 18, 2008 ("Common Stock Prospectus") disclosed that 3,444,975 shares being offered were shares being loaned to the Credit Suisse defendants pursuant to a share lending agreement ("Share
Lending Agreement"). Through a series of actions, including a public offering, a concurrent offering of convertible notes, and a share lending agreement between ECD and Defendants, Defendants removed the normal market breaks on short sale activity and permitted extraordinary short selling of ECD stock. This short selling drove the price of ECD common stock down from $72 per share on June 18, 2008, to less than $1 in February 2012, when ECD filed for bankruptcy protection.
A consolidated complaint was filed on February 3, 2014.
This case was transferred to the Southern District of New York on October 21, 2014.
On September 1, 2017, the Court issued an Order granting Defendant's motion for summary judgment. This case was ordered closed.