February 19, 2025
A New York federal judge has granted class certification to investors alleging that Credit Suisse manipulated the market for its XIV notes, while denying certification for those claiming losses from misrepresentations, finding that the suggested class failed to resolve previous deficiencies in its proposal.
The four lead plaintiffs — Set Capital LLC, Apollo Asset Ltd., Aleksandr Gamburg and Stefan Jager — intended to represent a Securities Act class, which has already been certified, as well as the misrepresentation and manipulation classes, according to the order signed Tuesday by U.S. District Judge Analisa Torres.
In their suit, the investors claimed that Credit Suisse plotted to trigger a liquidity crunch that caused the price of its exchange-traded notes to drop nearly 96% after the close of regular trading on Feb. 5, 2018. The crash caused an “acceleration event” that allowed Credit Suisse to redeem those notes at a cratered price, earning what investors said were $475 million to $542 million in profits.
Some investors were damaged by Credit Suisse’s misrepresentations, and others were damaged based on Credit Suisse’s market manipulation, the suit alleged.
The investors are represented by Michael B. Eisenkraft, Laura H. Posner, Steven J. Toll, Brendan Schneiderman and Carol V. Gilden of Cohen Milstein Sellers & Toll PLLC, Eduard Korsinsky, Nicholas I. Porritt, Adam M. Apton and Alexander Krot of Levi & Korsinsky LLP and Adam David Hollander and Kimberly Alice Grinberg of Slarskey LLC.
Read Judge Partially Certifies Credit Suisse XIV Notes Class Action.