Investors Target Credit Suisse Over $340M In Losses

Law360, New York (July 18, 2012, 5:44 PM EDT) -- A putative class of investors sued Credit Suisse Securities LLC on Monday for allegedly understating the risks when selling exchange-traded notes that rapidly lost value when the bank suspended issuance of the notes, causing “disastrous losses” of an estimated $340 million.

The putative class action, filed in Manhattan, alleges Credit Suisse failed to disclose market scenarios that could cause the ETNs to crash, which they did in February and March.

Named plaintiffs Grace Trading LLC and Ann Nicolosi seek to represent everyone who bought the securities...
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