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Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Credit Suisse Group AG and Janus Index & Calculation Services LLC

Oklahoma City, OK (April 6, 2018) – On April 4, 2018, a securities class action lawsuit was filed in the United States District Court for the Central District of California against Credit Suisse Group AG and Janus Index & Calculation Services LLC on behalf of a class consisting of investors who purchased or otherwise acquired Credit Suisse VelocityShares Inverse VIX Short Term ETNs (NASDAQ: XIVH).  The complaint alleges violations of federal securities laws, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 15, 2015 through April 3, 2018.  The Complaint alleges Plaintiff and each member of the Class purchased the Notes pursuant to a registration statement including prospectuses and pricing supplements (collectively, the “Registration Statement”) that was active during the Class Period. The Registration Statement was materially false and misleading about a metric crucially important to investors.

On February 5, 2018, investors incurred massive losses when XIV plunged more than 90% in after-hours trading, dropping in value to a low of $10 at 6:30pm, with an ultimate end price of $15.43.

On February 6, 2018, Credit Suisse issued a press release stating that it was accelerating the Maturity Date of the Notes.  The Complaint further alleges that Credit Suisse obtained substantial financial benefits by accelerating the Maturity Date, because the Notes’ value was depressed (and Credit Suisse’s redemption payment obligation was reduced) by the acceleration.  According to the Complaint, although Plaintiff and members of the Class sustained devastating losses as a result of Defendants’ conduct, Credit Suisse itself escaped without damage.  As reported by Bloomberg on February 6, 2018, “Credit Suisse says it has not suffered any trading losses related to the exchanged-traded note[.]”

Plaintiff seeks to recover damages on behalf of class consisting of investors who purchased or otherwise acquired Credit Suisse VelocityShares Inverse VIX Short Term ETNs during the Class Period and are therefore a member of the Class as described above.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification.  Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN:  Robin.

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