A lawsuit is pending for certain investors in Credit Suisse Group AG (NYSE:CS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 05/16/2023 -- The Shareholders Foundation announced that an investor, who purchased shares of Credit Suisse Group AG (NYSE: CS), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Credit Suisse Group AG in connection with certain allegedly false and misleading statement.
Investors who purchased shares of Credit Suisse Group AG (NYSE: CS) have certain options and investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
In October 2022, Credit Suisse began experiencing a sharp increase in customer outflows, or withdrawals of client funds, after a series of quarterly losses and risk and compliance failures significantly decreased the Company's American Depositary Share ("ADS") price.
On December 2, 2022, following large client withdrawals and significant losses, Credit Suisse's Chairman Axel Lehmann advised investors that as of November 11, 2022, customer outflows had "basically stopped". Then, on February 9, 2023, Credit Suisse reported its annual financial results and admitted to large customer outflows through year-end 2022.
On February 9, 2023, Credit Suisse announced its 2022 financial results. The announcement revealed that large customer outflows had continued through year-end 2022. Specifically, the announcement reported customer outflows of 110.5 billion Swiss francs in the final three months of 2022, a figure which far exceeded market expectations.
Then, on February 21, 2023, Reuters reported that the Swiss Financial Market Supervisory Authority was reviewing Lehmann's previous comments regarding customer outflows.
Shares of Credit Suisse Group AG (NYSE: CS) declined from over $10 per share in early 2022 to as low as $1.75 per share on March 15, 2023.
The plaintiff claims that between December 1, 2022 and February 17, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) contrary to Defendant Lehmann's representations in December 2022, the sharp increase in customer outflows Credit Suisse began experiencing in October 2022 remained ongoing; (ii) accordingly, Credit Suisse had downplayed the impact of the Company's recent series of quarterly losses and risk and compliance failures on liquidity and its ability to retain client funds; (iii) as a result, Credit Suisse had overstated the Company's financial position and/or prospects; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Credit Suisse Group AG (NYSE: CS) have certain options and should contact the Shareholders Foundation.
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