Boston, Massachusetts, Apr 06, 2021 (Newsfile Corp via COMTEX) -- Boston, Massachusetts--(Newsfile Corp. - April 6, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential violations of the federal securities laws by Credit Suisse Group AG ("Credit Suisse" or the "Company") /zigman2/quotes/202835784/composite CS +1.37% .
On March 29, 2021, before the market opened, Credit Suisse issued a press release disclosing that "[a] significant US-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks. Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions. While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results, notwithstanding the positive trends announced in our trading statement earlier this month."
On this news, Credit Suisse American Depository Shares fell from a March 26, 2021 close of $12.87 per share to $11.39 per share on March 29, 2021 (a decline $1.48 per share or 11.49%), on heavy volume. Credit Suisse shares continued to fall $0.79 per share (or 6.9%) over the next two trading days to close at $10.60 per share on March 31, 2021.
On April 6, 2021, Credit Suisse issued a press release disclosing that the Company would be taking "a charge of CHF 4.4 billion [appx. $4.7 billion] in respect of the failure by a US-based hedge fund to meet its margin commitments as we announced on March 29, 2021" and that "[t]he Board of Directors has launched investigations into [US hedge fund and the supply chain finance fund matters] which will not only focus on the direct issues arising from each of them, but also reflect on the broader consequences and lessons learned." The Company further stated in a separate release on April 6, 2021, that: "Following the significant US-based hedge fund matter, Brian Chin, CEO of the Investment Bank is stepping down from his role on the Executive Board, effective April 30, 2021. Lara Warner, Chief Risk and Compliance Officer, is stepping down from her role on the Executive Board, effective April 6. Both of them will leave the bank."
If you have sustained significant losses from your transactions in Credit Suisse securities and would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: http://www.bermantabacco.com/case/credit-suisse-group-ag/ .
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
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