Credit Suisse’s recent troubles have led to its first lawsuit by US investors, who claim that the bank exaggerated its financial prospects to shareholders.
The Swiss lender’s shares fell by 30% on Wednesday, prompting the Swiss central bank to offer it a £44.5bn lifeline. Despite a recovery of about 20% in shares by Thursday’s close in Zurich, a class-action complaint was filed in federal court in Camden, New Jersey.
The lawsuit alleges that the bank made “materially false and misleading statements” in its 2021 annual report. The Rosen Law Firm filed the suit and specializes in representing individual shareholders in such cases.
The $54 billion lifeline won by #CreditSuisse on Thursday gives it a fighting chance to rebuild its business. Some clients aren’t waiting around to find out how that goes.
In #Asia, several ultra-wealthy clients continued to cut back their exposure amid the tumult this week. In… https://t.co/vqBbgMDB2m
— Share_Talk ™ (@Share_Talk) March 17, 2023
The firm was also the first to sue Silicon Valley Bank after it was put into receivership last week. Bigger investors typically file the primary shareholder cases.
Credit Suisse admitted last week that it had “material weaknesses” in its reporting and controls procedures when it published its delayed 2022 annual report. The bank experienced its biggest annual loss since the 2008 financial crisis in 2022 and cancelled bonuses for its top executives. Credit Suisse declined to comment on the lawsuit.
Credit Suisse is currently dealing with the departure of multiple high-ranking executives from its Asia-Pacific equities division, amid growing concerns about the bank’s financial stability affecting global markets.
As per a memo obtained by Bloomberg News, Nick Silver, who was the co-head of equities for Asia Pacific and head of equities for Japan, will be leaving to take up a senior role at BNP Paribas SA. Additionally, Jonathan Jenkins, who served as the head of equity sales for the region, and Chris Prasertsintanah, the head of equities for South Asia and the country manager for Thailand, have also decided to resign.
Silver will be taking up the position of head of Asia-Pacific sales for the prime-brokerage division at BNP Paribas, which primarily caters to hedge-fund clients. A spokesperson for the Paris-based bank has declined to comment on the matter. Jenkins and Prasertsintanah are also expected to explore opportunities outside of Credit Suisse.
As of now, there has been no official statement from Credit Suisse regarding these departures.
