Credit Suisse Faces Class Action Lawsuit in the U.S.
A U.S. legal firm has filed a class action lawsuit on behalf of investors of Credit Suisse over the duo failures from the collapse of Archegos and Greensill.
Los Angeles-based Frank R. Cruz said it had filed a class action lawsuit on behalf of Credit Suisse investors during a designated period (29 October 2020 to 31 March 2021), according to a statement.
«Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects,» the law firm said.
Legal Claims
Legal claims made include improper assessment due to Credit Suisse’s co-mingling of lending, asset management and private wealth as well as aggressive pursuit of fees; ignored Greensill-linked red flags; conspiracy to allow Archegos to covertly take on excessively concentrated and risky positions; understated risk exposure and overstated capital ratios; and inadequate internal controls.
In April, the City of St. Clair Shores Police & Fire Retirement System filed a class action lawsuit against the bank in a Manhattan-based federal court for allegedly misleading investors and mismanaging exposure to high risk clients.
