Credit Suisse Group AG : VelocityShares Daily Inverse VIX Short Term exchange traded notes Securities Litigation
On or around 11/15/2019 (Other)
Filing Date: March 14, 2018
Plaintiff's law firm issued a press release on March 14, 2018, announcing the lawsuit. The Complaint alleges that (i) Credit Suisse was actively manipulating the Inverse VIX Short ETNs by liquidating its holdings in various financial products to avoid a loss; (ii) Credit Suisse was manipulating the Inverse VIX Short ETNs to the detriment of investors; and (iii) as a result of the foregoing, Defendants’ statements about Credit Suisse’s Inverse VIX Short ETNs were false and misleading and/or lacked a reasonable basis.
On February 5, 2018, at the close of the market, Inverse VIX Short ETNs closed at $99. By 6:28pm, however, the price per Inverse VIX Short ETN had declined to a low of $10.16, a drop of approximately 89.74 percent.
On March 23, 2018, Plaintiff filed an amended Complaint. On June 21, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on August 20. Defendants filed a Motion to Dismiss the consolidated Complaint on November 2. On August 16, 2019, the Magistrate Judge assigned to the case issued a Report recommending that Defendants' Motion to Dismiss be granted. On September 25, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed without leave to amend. Lead Plaintiffs filed a notice appealing the Court's dismissal Order on October 18.
Company & Securities Information
Defendant: Credit Suisse Group AG
Industry: Investment Services
Ticker Symbol: XIV
Company Market: NASDAQ
Market Status: Public (Listed)
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First Identified Complaint
Rajan Chahal, et al. v. Credit Suisse Group AG, et al.