This is a securities fraud class action lawsuit against Credit Suisse and certain of its officers and directors.
Credit Suisse operates as a financial services company. Credit Suisse operates in three segments: Investment Banking, Private Banking, and Asset Management..
The class action lawsuit alleges that,Credit Suisse issued materially false and misleading statements regarding Credit Suisse's business and financial results. The class action complaint further alleges that Credit Suisse failed to write down impaired securities containing mortgage-related debt.
According to the complaint, the true facts, which were known by Credit Suisse but concealed from the investing public during the Class Period, were as follows:
(a) that Credit Suisse failed to record losses on the deterioration in mortgage assets and collateralized debt obligations ("CDOs") on Credit Suisse's books caused by the high amount of non-collectible mortgages included in the portfolio;
(b) that Credit Suisse's internal controls were inadequate to ensure that losses on residential mortgage-related assets were accounted for properly; and
(c) that Credit Suisse's traders had put incorrect values on CDOs and other debt securities, concealing the exposure Credit Suisse had to losses.
On February 19, 2008, Credit Suisse announced that it had undertaken an internal review that resulted in the repricing of certain asset-backed positions in its Structured Credit Trading business. The total fair value reductions of these positions were estimated at approximately $2.85 billion. On this news, Credit Suisse's ADRs collapsed to close at $48.22 per ADR on February 19, 2008, a decline of almost 31% from $69.61 per ADR in early October 2007.
Name (Stock Symbol)
Credit Suisse Group AG (CS)
Credit Suisse Group operates as a financial services company worldwide. It operates through three segments: Private Banking, Investment Banking, and Asset Management.
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