Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Credit Suisse VelocityShares Daily Inverse VIX Short Term ETNs (NASDAQGM:XIV) in connection to alleged violations of securities laws by Credit Suisse. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in XIV from January 29, 2018 until February 5, 2018.
The class action complaint specifically alleges that during the period in question, XIV might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that Credit Suisse was participating in the active manipulation of the ETNs by executing liquidations of its holdings in certain financial products, so as to avoid losses; that the company’s manipulation of the ETNs was to the detriment, rather than the benefit of its investors; and that consequently the company’s statements to the public regarding the ETNs were false and misleading during the relevant period. When XIV declined by more than 90% in after-hours trading on February 5, 2018, declining from $99 to $10 in a period of about two and a half hours, Credit Suisse announced the following day that it would trigger an acceleration event, functionally shutting down the product two weeks later, on February 21, 2018, resulting in harm to investors. The complaint, which alleges that the Intraday Indicative Value of the product was not timely updated based on real-time data, it was thus an inaccurate gauge of the notes, value, and states that when true facts emerged, investors suffered losses.
According to the company’s website, Credit Suisse is a multinational investment bank and financial services company whose “strategy is to be a leading wealth manager, with strong investment banking capabilities.” The company was founded in 1856 and today operates in roughly 50 nations with 46,720 employees. It trades on the New York Stock Exchange under the symbol CS.
A class action lawsuit has already been filed in connection with Credit Suisse VelocityShares Daily Inverse VIX Short Term ETNs. If you wish to serve as lead plaintiff in the XIV lawsuit, you must move the Court no later than May 14, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.