Credit Suisse VelocityShares Lawsuit Filed
Levi & Korsinsky announces it filed the class action Chahal v. Credit Suisse Group AG (1:18-cv-02268) in the United States District Court for the Southern District of New York on behalf of Credit Suisse Group AG’s VelocityShares Daily Inverse VIX Short Term ETNs investors who invested between January 29, 2018 and February 5, 2018. Inverse VIX Short ETNs are unsecured debt obligations of Credit Suisse with a value tracking the inverse of the daily performance of the underlying index, S&P 500 VIX Short-Term Futures Index ER (INDEXSP: SPVXSPI).
On January 29, 2018, the beginning of the Class Period, Credit Suisse filed a pricing supplement (No. VLS ETN-1/A48) with the SEC pursuant to Rule 424(b)(2) to offer 16,275,000 Inverse VIX Short ETNs at a denomination and stated principal amount of $10 each. This case alleges that the prospectus contained false and misleading statements regarding Credit Suisse’s underlying trading activity and Credit Suisse’s option or obligation to “accelerate” the Inverse VIX Short ETNs. Notably, the statements in the prospectus were materially false and/or misleading misrepresented and failed to disclose 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.
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.
If you suffered a loss in Credit Suisse Group AG’s VelocityShares Daily Inverse VIX Short Term ETNs you have until May 14, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.To receive more information, please fill out the form.